How Payday Loans Differ

Payday Loans Are Unique

Payday loans differentiate from other loan instruments in that:

1. They are short term – 7-14 days
2. They are limited in value - $100 – 500
3. They do not require security
4. They can be fully managed online
5. They require full time employment

How they differ from:

• Loan sharks – provide greater sums with inequitable security and have harsh non-repayment penalties
• Pawn brokers – no goods are required to be held on security, higher image
• Instant finance houses – generally require loans to be over $5000 due to high processing fees
• Bank loans – do not require security, banks do not provide low value, short term loans

Payday Loan Alternatives

Alternatives to payday loan fees:

1. Employer advance
2. Trade Supplier Advance
3. Foregoing the loan
4. Late fees
5. Bounced check fees
6. NSF fees or
7. Other non-economic financial transaction.
8. Home Equity Loan
9. Credit Cards

These are less attractive and more costly to the client.

Back To Top

Cash Advances Index | How They Work | Types | Requirements | Fees | Benefits | Users | Loan Market | Types of Vendors | Glossary