A payday loan is also called as payday advance is a small type of unsecured loan which is regardless of whether repayment of loan is associated to the borrower’s payday. These types of loans are sometimes also called as cash advance, although it could also be termed as amount of cash provided against a prearranged credit line like credit card. The payday loans are available not from banks but some business loan stores and that is why they are mostly called credit line small business loans. It is called payday loans because the amount, which you borrow, needs to be returned back on your next payday which is its due date.
The features:
The loan process involves providing a short-term unsecured business credit line loan from a lender to be repaid at the borrower next payday. It starts with some verification of borrower’s details from the bank statements and salary statements. Although some of the payday loan lender even don’t verify income or credit card checks. It depends on companies and individual franchises as they have their own criteria of providing payday loans. In the basic payday loan model, borrower needs to visit the lender’s store and secures cash loan after agreeing to pay the amount in his next paycheck. As security,one needs to provide a signed postdated cheque to the lender after mentioning full amount details of unsecured business line of credit and its fees.
The final verdict:
On the date of maturity of loan, the loan borrower is expected to return the full amount to the lender store in person. If borrower is not able to pay the amount in person, the lender is allowed to redeem the check signed previously by the borrower. If somehow the account is found short of funds and cheque bounces then the borrower may face an extra bounced cheque fees, in addition to some extra fees as a result of failure of making the full payment on time.
While with the more recent changes and advancements of Loans, borrowers need to complete a loan application online as online options are available for checks. The unsecured small business loan reviews suggest that the method of loan application and repayment happens through online transactions. This starts by after verification of documents, bank statements or pay slips which could be uploaded online on the websites or on the email mentioned there on the website.
After complete verification of documents and background check, the funds could be transferred to the borrower’s valid account. At the time of loan payment, this could also be done online after electronically withdrawing the amount from the borrower’s salary account on next payday as this all comes in cash advance online payment terms.
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