Payday lenders have had a booming success around the world and have credited it by offering a service that was previously unavailable. They point out that emergency cash loans offer an attractive alternative to people who can not or do not want to use less expensive conventional routes to borrow money.
Some companies offering emergency cash advances have described their approach as a practical financial service for young, Web savvy borrowers, accustomed to the ease and convenience of instant online communication. These applicants often feel excluded from the traditional banking system.
The modern consumer of today, raised entirely in social networks, can even apply for these microcredits using their smartphones, with the money transferred to the bank accounts of the selected applicants in a matter of minutes.
Cash transfer within the hour via direct payday lenders online
As traditional loan outflows become harder to find and require an increasing amount of paperwork, even for small loans, payday advances have intervened to fill the gap. Payday loans direct lenders online as OnePayday.com notes are available day and night, seven days a week, and in many cases, the process is so completely automated that the loans are granted without the borrower having to talk to another person.
After applicants have established a successful payment history of cash advance loans, some lenders only require that applicants send a text message with the desired loan amount and the desired loan term, and the money is put to disposition instantly.
Comparison of payday loans with other types of loans
Many types of short-term loans can seem costly when the fees associated with the loan are taken into account as an annual APR. For that reason, payday lenders prefer to compare their loan products with bank overdraft fees and other charges that traditional lenders use to recover funds.
Many payday lenders do not even characterize their business as banks, simply as another form of Internet technology, used to connect willing borrowers with willing lenders.
Payday loans are a viable type of business that is in full swing in almost every country in the world. The cost of interest will depend on the lender offering the service, in addition to the regulations of each country.
Check cashing in place is another service frequently offered by payday loan companies. Perhaps the client does not have a bank account or wants to access cash immediately. A fixed fee or a percentage of the check amount will be charged as a fee. Short-term loan companies often open early and close late to take advantage of those who need immediate access to cash.