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IOU Financial Review: Pros, Cons, How to Apply

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IOU Financial is a Canadian financial institution that offers personal and business banking services. It was founded in 1984 and has been operating in Canada since 1985. IOU Financial provides banking services to Canadians of all ages, from teenagers to senior citizens with their various products such as savings accounts, credit cards, mortgages, auto loans, investment services etc. IOU Financial also offers an online service for those who prefer this option instead of visiting the bank branch or ATM.

There are many reviews about IOU Financial on the internet with some saying good things about it while others say bad things about it. So, we have gathered all the information and prepared an ultimate review of IOU financials to let you know every detail.

What is IOU Financial?

The fundamental purpose of IOU Financial is to make business financing simple. IOU Financial, unlike banks, does not take weeks to approve business loans since they recognise that Canadian business owners do not always have that type of time. IOU Financial can pre-approve and fund 85 per cent of its applicants in as short as 24 to 48 hours.

What Are the Requirements for IOU Financial?

To even prequalify for a sizable loan with reasonable terms, most businesses must generate a steady annual income and have a passable business plan.

If you apply with IOU Financial, you must demonstrate that your company:

  • Do you own at least 80% of the company? (or 50 per cent between you and your spouse)
  • Has been in operation for at least one year
  • At least 10 monthly deposits are generated for your company bank account.
  • Earns $100,000 or more each year (an average of $3,000 per day)

The following are examples of personal and financial papers that IOU may request or inspect throughout the application process:

  • Evidence that your company is based in Canada.
  • Bank statements, customer bills, and so on.
  • Personal information such as your driver’s licence
  • Your credit report and credit score for your company

How to Use an IOU to Apply?

If you want to pay them a visit, they are located in Montreal, Quebec, and are open Monday through Friday from 9 a.m. to 5 p.m. They also have a call centre in Atlanta, Georgia (United States) and a North American branch in Atlanta, Georgia (United States).

Potential clients of IOU, on the other hand, can apply online or over the phone, and getting pre-approved takes only 3 minutes. If your company is approved for funding, you should receive a loan offer within 24-48 hours. If all goes according to plan, the loan should be put into your business bank account shortly after.

In general, your approval odds are highly influenced by the annual revenue of your company. When you apply, IOU will also use their ‘business risk score’ to determine if you will make or default on future payments.

What Characterizes an IOU Business Loan?

It’s crucial to do your homework on any potential lender so you can be sure they’re a legitimate company offering the correct credit solutions for your needs.

IOU Financial, on the other hand, stands out among other business loans since they:

  • Business loans are available in both Canada and the United States.
  • They claim to pre-approve 85% of clients who apply (within 24-48 hours)
  • The Better Business Bureau has given you an A+ rating.
  • There are no prepayment penalties or upfront costs when you apply or borrow.
  • Offer a daily or weekly payment schedule.
  • Are open to approving a variety of company kinds
  • Use a calculator to estimate your primary loan costs.
  • On their FAQ page, provide a thorough overview of their administrative fees.
  • Can offer you a second loan once you’ve paid off 40% of the principal on your first.
  • Are now on Newswire’s Growth 500 list of Canada’s fastest-growing companies.

What Are the Advantages and Disadvantages of a Business IOU Loan?

You should also analyse all of the negative and good features of your potential business loan before applying. The following are the advantages and disadvantages of IOU Financial:

Benefits

  • They provide quick pre-approval and cash for loans that are relatively significant.
  • Applying and qualifying is a simple process.
  • The majority of their loan fees are listed on their website.
  • Their loan calculator calculates how much you’ll pay and save over time.
  • Businesses with high profits may be eligible for further funding.

Drawbacks

  • No cash advances from merchants (financing in exchange for a per cent of your sales)
  • Small or low-income firms may not be eligible.
  • The ultimate sum includes hefty service and administration fees.

What may a company loan from IOU Financial be used for?

IOU claims on its website that it can approve all types of enterprises for funding in Canada and the United States. To help your business expand, you might wish to consider the following expenses:

  • Buying real estate, equipment, and other assets
  • Obtaining numerous licences, permissions, and accounts
  • Paying new and existing workers
  • Renovations, additions, and expansions
  • Maintenance and repairs
  • Advertising methods
  • Company vehicle financing

The Bottom Line

At Lionsgate, we specialize in helping people get the extra cash they need and obtain funding for private mortgages, as well as for other real estate transactions. If you are looking to buy land in Canada, get a mortgage or apply for a loan, fill out the form below. Or, You can leave us a message and we will try to connect you with local lenders and sources that best meet your needs.

If you found this article helpful, please share it on your timeline and with someone you care about. Also, visit our blog to read similar helpful articles on finance, real estate, and getting mortgages.

 

 

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