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Learn about payday loan options available for plumbers.
Payday loans can provide you with a little extra cash until your next payday - but consider the cost before you apply.
⚠️ Warning: Be cautious with payday loansPayday loans are expensive. If you're experiencing financial hardship and would like to speak to someone for free financial counselling, you can call Credit Counselling Canada from 8:00am to 5:00pm Monday to Friday at +1 866-398-5999. Consider alternatives before applying for a payday loan:
- Local resources. Government agencies, nonprofits and local charities may offer free financial services and help with food, utilities and rent for those in need.
- Debt relief companies. These services can help you find a solution to reduce your debt payments and work toward becoming debt-free.
- Payment extensions. Talk with your bill providers about a longer payment plan or extension on your due date if you're behind on payments.
- Side jobs. Today's digital marketplace offers the ability to more easily sell unwanted items, sign up for food delivery or drive for rideshare services.
GoDay Payday Loan
- Loan amount: $100 - $1,500
- Loan term: Up to 62 days
- Borrowing costs: Varies by Province (Between $15-$19 per $100 borrowed)
- Bad credit borrowers: OK
Why do plumbers need access to payday loans?
Plumbers work by charging invoices, which can take time to get paid. This can cause cash flow fluctuations in their business. Because they are self-employed with fluctuating income they may have trouble getting approved for a traditional loan – this is where a payday loan might be an option.
Plumbers who are just starting up also have additional expenses such as needing a van for emergency plumbing call-outs and the continuous expenses that come with maintaining the van. They also need to get the proper equipment needed for a call-out.
Types of expenses that could arise include:
- Compensating employees
- Paying for vehicle expenses (gas, repairs, routine maintenance)
- Purchasing supplies & equipment (pipes, tubing, pumps, tanks, valves, fittings, drain cleaners, gloves, goggles, protective footwear etc.)
- Repairing or maintaining your place of business
Compare payday loan options
Maximum borrowing costsYou should always refer to your loan agreement for exact repayment amounts and costs as they may vary from our results. The table below shows the maximum allowable cost of borrowing under a payday loan for each province:
|Province||Maximum allowable cost of borrowing|
|Alberta||$15 per $100 borrowed|
|British Columbia||$15 per $100 borrowed|
|Manitoba||$17 per $100 borrowed|
|New Brunswick||$15 per $100 borrowed|
|Newfoundland and Labrador||$21 per $100 borrowed|
|Northwest Territories, Nunavut & the Yukon||$60 per $100 borrowed|
|Nova Scotia||$19 per $100 borrowed|
|Ontario||$15 per $100 borrowed|
|Prince Edward Island||$25 per $100 borrowed|
|Quebec||Limit of 35% annual interest rate (AIR)|
|Saskatchewan||$17 per $100 borrowed|
How do payday loans work?
Payday loans work by allowing you to borrow a small amount of money you can afford to repay. This amount is usually between $100 and $1,500. You then pay back the amount you’ve borrowed plus interest, which often amounts to $15-$25 for every $100 borrowed. Each province and territory has its own regulations that limit the maximum interest rate that can be charged.
You can apply for a payday loan online or in store such as Cash Money. These can be an option for people who need money quickly and can also meet the repayment plans that are set by the lender of the loan.
Things plumbers should consider before getting a payday loan
As with any payday loan, there are many things to consider before you apply for one.
- Your budget. Are you able to pay back the amount you borrowed before the repayment deadline for the loan? Use a payday loan calculator to determine what the repayment amounts are likely to be. Meeting the repayment schedule is very important, as lenders charge late payment fees.
- Have you read the loan contract? It’s important to know what you are signing and to make sure that you understand fully what you are getting yourself into with this type of loan – especially given the high interest rates that are often charged.
- Have you considered your cash flow? Consider the length of the loan you want to get and whether or not that time frame is feasible when your income might not be stable.
What if I have bad credit history?
Generally, payday lenders will consider you for a loan even if your credit history isn’t perfect. Lenders will focus on your ability to repay the debts with the income that you have now instead of what might have happened in the past. It’s just a matter of finding those loans that accept you with a bad credit score and weighing up the pros and cons of getting a payday loan.
What other finance options do I have?
If you are self-employed, you also have the option of getting:
- A business loan that takes into account your cash flow and income from that job before allowing you to borrow money from the lender.
- A loan from family and friends who won’t charge high interest rates or have hidden fees in the way some personal loans do.
- A personal overdraft or line of credit from your bank. You can then draw on this, as and when you need funds.
How to apply for a payday loan
Applying for a payday loan is a pretty straightforward process. Many application forms are online and often take about 10-15 minutes to complete. Eligibility criteria differ among lenders but you generally need to be at least a Canadian citizen or permanent resident, be the age of majority in the province or territory in which you live (either 18 or 19 years old) and have some form of income.
- Step 1: Get your personal information. When you apply, have information about yourself, your employer and your finances ready. This will help make the application process quick, and you’re less likely to submit incorrect information — saving you from rejection. Make sure you have the following on hand:
- Proof of income, such as a pay stub or benefits letter
- Valid bank account
- Valid government-issued ID such as a passport or driver’s license
- Social Insurance Number (SIN)
- Step 2: Go to the lender’s website or visit a local branch. Most lenders have online applications you can fill out on their websites. But if you aren’t comfortable submitting your information online — or need your funds the same day — then visiting a storefront might be the way to go.
- Step 3: Complete the application and submit the required documents. Completing a payday loan application should only take a few minutes if you have the information you need on hand. Lenders typically ask for your personal details including your bank account numbers. Once you submit your application, it may take a few minutes to receive an answer.
- Step 4: Review your loan agreement and sign it. If you’ve been approved, your lender will supply you with a loan agreement. This should include a clear warning on the cost of payday loans as well as your loan term, APR and the fees you’ll have to pay. Read this carefully and note the full cost of your loan before you sign the contract. If you think the repayments will be more than you can afford, you’re under no obligation to accept the loan agreement.
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