Short term loans serve as a valuable financial tool for individuals facing unexpected expenses or temporary cash flow challenges. In Canada, these loans are widely utilized to bridge financial gaps and provide quick access to funds. Many people also use short term loans in Canada to improve their credit scores or fund business expenses.

Regardless of the purpose, Canada’s short-term loans are embraced by many individuals and households all around the country. According to Statistics Canada, more families are choosing personal loans over credit cards to pay for their expenses. In May 2023, non-mortgage loan debt increased by 0.4%, totalling $2.7 billion. Every year, this type of debt grew by 4.6%, showing a faster pace of growth for the second month in a row.

Some of these personal loans are short term loans, if you’re interested in obtaining one, it’s essential that you get familiar with different Canada short term loans, learn about their uses, and find out why FlexMoney stands out as a reputable lender in this domain. As an experienced online lender in Canada, we offer various short term loans to meet borrower’s unique needs. But before you proceed with your application, here’s everything you need to know.

What is a Short Term Loan?

A short term loan is a financial product designed to provide individuals with quick access to funds for a brief period, typically from a few weeks to a few months. These loans are intended to cover immediate expenses or temporary financial setbacks, offering a short-term solution without the long-term commitment associated with traditional loans.

Short term loans are characterized by their relatively quick approval process and flexibility in repayment terms. Some lenders offer these short term loans online, while others offer them in-person. The beauty of choosing FlexMoney is that we provide small loans online to people who need quick access to cash. This allows you to skip lengthy lines and wait times in person, ensuring you receive the funds directly in your bank account after approval.

Main Uses of a Short Term Loan

Short term loans in Canada serve diverse purposes, providing individuals and businesses with a quick and accessible financial solution.

Emergency Expenses

Life is unpredictable, and unforeseen emergencies can arise at any time. Short term loans can be instrumental in providing the necessary funds to address these emergencies promptly, whether it’s a sudden medical expense, urgent car repairs, or unexpected travel costs.

When you need an online loan for an emergency, FlexMoney can be your first and last stop. The quick approval process associated with our short term loans ensures that borrowers can respond swiftly to unexpected financial challenges without navigating the lengthy procedures often associated with traditional loans.

Cash Flow Challenges

Businesses, especially small enterprises, often face fluctuations in cash flow. Short term business loans in Canada can act as a financial cushion during periods of temporary financial strain, ensuring that operational expenses can be met without disrupting business activities. These online short term loans in Canada can be particularly beneficial for businesses dealing with seasonal variations in revenue or those awaiting payment from clients.

Home Renovation or Repairs

Homeowners may find short term loans helpful when faced with necessary but unplanned home renovations or repairs. Whether fixing a leaky roof, upgrading plumbing, or addressing electrical issues, using a loan for renovations through FlexMoney can help homeowners with the funds needed to maintain and improve their property.

The repayment terms for these short term online loans in Canada typically align with the temporary nature of the expenses, making them a practical financing option for home-related projects.

Debt Consolidation

For individuals managing multiple debts with varying interest rates, short term loans can offer a means of consolidating debts into a single, more manageable payment. By securing a short term loan with a fixed interest rate, borrowers can simplify their financial obligations and potentially reduce the overall interest paid. This can be particularly beneficial for those looking to regain control of their finances and streamline debt repayment.

How to Get a Short Term Loan?

Obtaining a short term loan in Canada is straightforward, especially when choosing FlexMoney. We use the industry’s fastest tools to provide a streamlined application process, quick decision-making, and same- or next-business-day fund disbursement. Follow these steps to get short term loans online and secure the funds you need.

Research Lenders

Explore reputable lenders that offer short term loans in Canada. Consider factors such as interest rates, repayment terms, and customer reviews to make an informed choice. FlexMoney provides some of the best short term loans in Canada, and it’s up to you to choose the one that suits your needs.

Visit our website to explore different types of loans to choose from and learn about the eligibility criteria for each. Whether you’re looking for personal or short term business loans in Canada, FlexMoney can help you out.

Check Eligibility Criteria

Different lenders have varying eligibility requirements. When looking for online short term loans in Canada, ensure you meet the necessary criteria, including minimum income thresholds, credit history checks, and age restrictions. Although qualifying for a loan with FlexMoney is simple, it’s essential that you get familiar with our requirements to ensure a quicker process.

Submit Application

When applying for a short term loan in Canada, you will find that most lenders offer a similar process. You must usually complete the application process and provide accurate and up-to-date information. This often includes personal details, income information, and the desired loan amount.

At FlexMoney, we aim to ensure that getting a loan in Canada is accessible for all our customers. So, our streamlined application process will help you from beginning to end.

Wait for Approval

Some lenders will review your application and assess your creditworthiness when you apply for short term loans online. The approval process for short term loans is typically faster than traditional loans.

Receive Funds

Once approved for short term online loans in Canada, funds are disbursed quickly, often within a day or two. Some lenders may offer same-day funding for immediate needs.

Types of Short Term Loans in Canada

There are a few different types of short term loans in Canada that you can apply for when you need cash.

Payday Loans

Payday loans are short term loans designed to cover expenses until the borrower’s next payday. This type of short term loan in Canada is known for its quick approval but can come with high interest rates.

Some individuals seeking payday loans may also have low income, requiring them to seek funds to cover bills until their next payday. The good news is we also offer low-income loans for Canadians who need quick access to cash but don’t have a high income to show.

Line of Credit

A short term line of credit provides borrowers with a revolving credit limit. They can borrow and repay multiple times within the specified limit, making it a flexible option for ongoing financial needs.

Installment Loans

When you need extra cash to cover unexpected expenses, such as medical bills or car repairs, explore short-term loans in Canada with installments to ease the financial burden over the next few months.

These popular online loans allow borrowers to repay the borrowed amount in equal installments over the agreed-upon period. The interest rates are generally lower compared to payday loans.

Title Loans

Title loans involve using a valuable asset, such as a vehicle, as collateral for the loan. These loans are secured and may offer lower interest rates than unsecured options.

FAQs About Short term Loans in Canada

When seeking the best short term loans in Canada, borrowers often stumble upon some common questions. Here are some frequently asked questions about online short term loans in Canada FlexMoney receives.

Can You Get Short Term Loans with Bad Credit?

Yes, it is possible to obtain short term loans with bad credit. While traditional lenders may be hesitant, some lenders, including FlexMoney, specialize in providing financial solutions for individuals with less-than-perfect credit histories. However, the interest rates may be higher for those with lower credit scores.

You can explore short-term loans in Canada with installments, regardless of your credit score, to manage the repayments more comfortably over a few months.

Will Online Short Term Loans Affect My Credit Score?

Applying for an online short term loan may result in a soft inquiry on your credit report, which does not impact your credit score. One of the benefits of a personal loan is that you can use it to improve your credit score gradually.

Once you accept the loan and begin repayment, your responsible behaviour can positively influence your credit score.


Short term loans are crucial in addressing immediate financial needs and providing a quick solution to unexpected expenses. Understanding the various types of short term loans, their uses, and the process of obtaining them is essential for making informed financial decisions.

When considering short term loans in Canada, reputable lenders like FlexMoney stand out for their transparent terms, flexibility, and commitment to customer satisfaction. By navigating the landscape of short term loans wisely, you can effectively manage your finances and bridge temporary financial gaps while accessing the best short term loans in Canada.