Applying for a standard bank loan, even one that promises instant approval, can take weeks. This may be fine in some cases where you need to borrow larger sums of money but, in others, you may be better off thinking about a fast payday loan as an alternative. Sometimes, for example, you may just need to borrow:
> a small sum of money
> for a short period of time
Traditional bank financing, such as secured and unsecured loans, may not tick all your boxes if you just need a small amount of cash quickly for a few weeks (i.e. until your next salary comes in). Many of these loans aren’t able to be set up for smaller sums and, by the time you get approval, you may have been paid again anyway!
So, how fast might a payday loan be? This may depend on the loans company you use, of course, but generally you’ll be looking at getting approval and payment typically in a day or so. Most payday companies are able to organise their loans so you get:
> virtually instant approval
> your loan paid into your bank account within 24 hours or so (often within just a matter of hours)
So, as you may be able to work out for yourself, this may be a good solution if you need to borrow enough to cover a cash short-fall without getting into a long-term loan/debt agreement. The whole point of payday loans is that you repay what you borrow at a pre-agreed date automatically.
So, your payday loan might be done, dusted and repaid in full come your next payday. Your fee for borrowing is added to your original loan sum. This is typically a fixed fee to start with so you’ll know what your loan costs you.
Bear in mind, however, that a fast payday loan is meant to be repaid (to make the most of it) when your salary next comes in. Some companies may allow you to roll-over your loan for a longer period but this may be when higher interest charges kick in and this may therefore be best avoided.