Payday Cash Advance

Many states have set limits to the amount of interest that lenders can charge for a payday cash advance. This helps protect the consumer against individuals who would join the payday cash advance industry to prey upon the needy. People who are strapped for cash sometimes face few alternatives for receiving fast cash, and payday cash advances provide a necessary service for many.

A payday cash advance can be given several ways. The most familiar is through lender shops found in most cities nationwide. They are sometimes located in their own building, within malls or inside department stores. Shipping and money wire services are sometimes close by as well, offering complimentary services. There is a growing trend of e-Bay selling service stations being included in some payday lending establishments. These stations provide digital imaging and expert advice for easy setup of e-Bay listings to sell items in times of need. This service can enhance a consumer’s chances for a higher sale for their item than traditional pawning options, such as selling to the pawn shop or consigning the item to be displayed in their store. Online selling opens the item to a much larger audience. Some payday cash advance services are included in pawn shops, but often they are considered separate forms of fast cash options. Identification, pay stubs, and bank statements are important pieces of information that the borrower usually has to provide in order to receive a payday cash advance in order to prove to the lender that they have a steady source of income and a relationship with a creditable financial institution.

A payday cash advance is different than a credit line cash advance tied to a credit card, bank account, or credit union service. The payday cash advance is usually funded by lenders that are not associated with banking or financial institutions. The loan amounts usually offered range from small amounts of $100 or so to a few thousand dollars. It is expected that the cash advance will be returned by the next payday, or the one following. The fee for the service is usually assessed by determining how much a borrower’s pay will be on a normal payday, and issuing a cash advance for that amount minus the fee. The lender will be paid the full amount of the borrower’s pay to cover the reduced amount plus the advance.

Another method for distributing payday cash advances is through online web services. Sites are set up to receive the same information from borrowers that are received from brick and mortar stores. There is more emphasis on contact references and a valid bank account than paper statements from financial institutions and pay stubs, however. This emphasis provides obvious conveniences for an online environment. Customer service representatives can verify the electronic information provided in such a way as to provide sufficient security for the lender, allowing them to provide the payday cash advances with less risk to them.

A third way that payday cash advances can be administered is through credit line services provided by their employer. Often, payday lenders partner with existing businesses to offer packages, much like insurance plans, to their employees without their having to go to payday loan centers. An employer can contract with a payday lender to offer payday cash advances and integrate the request and reporting system into their current time, scheduling, and payday system. Repayment may even be integrated into employees pay checks with little or no effort after setup. The options for payday cash advances can then easily be presented as another company benefit, although with some cost for its use, just like insurance. This built in insurance can add peace of mind to employees, especially new ones, who may see their beginning years with the company as a time of transition financially, and may need the payday cash advance option while their structure the timing of their budget and payment of bills with pressing due dates.