What is a fast cash loan?
A fast cash loan is a debt facility offered to consumers which enables them to receive liquid funds into their accounts on an accelerated timeline compared to other retail loans. These types of loans are available online and typically get processed in under an hour, providing the borrower with almost an immediate access to liquidity that they may need during certain times of their life.
All things equal, fast cash loans generally have a higher rate of interest than other forms of retail banking loans provided by financial institutions due to their unsecured nature. This means that there is a higher burden of risk on the part of the lender as a default by the borrower does not trigger access to assets that the lender can sell to recoup money. For example, mortgage rates are generally lower than fast cash loan rates because a defaulted payment can lead to foreclosure on the home wherein the lender can reclaim at least a majority of loan losses.
In terms of the principal amount offered by fast cash loan providers, these types of loans do offer more than the average payday loan (which is also a type of debt that provides near-instant cash) but is normally lower than other forms of retail loans (e.g. mortgages, auto loans). This is largely attributable to the relatively limited requirements needed on the part of borrowers to obtain such a loan. In Canada, principal amounts offered by providers tend to range between $500 to an upper limit of ~$10,000.
The loans are structured to be paid back in installments wherein the lump sum is funded right after loan approval and paid back over time. This payback period can be anywhere from a few months to a few years (typically under 5 years).