A payroll loan is also called a payday loan, payday advance, salary loan, small dollar loan, or a short-term loan. It’s a small, short-term unsecured loan. A payroll loan can be of great help when you need to access cash quickly and conveniently.
A payroll loan can be described as a cash advance that a borrower can receive based on his/her employment status and income. The reason a payroll loan is also called a payday loan is that the amount the amount of the loan is typically scheduled for repayment upon getting paid by an employer.
Things to Know Before Applying for a Payroll Loan
- Usually, you’ll receive $1.000 to $1.500
- The loan and fees are typically paid within 2 weeks
- The fees associated with payroll loans are usually high, and they may translate into an APR, making up approximately 15-30% or even more
- The due date may be extended by payroll lenders, but you’ll be charged additional fees for this
- You can get approved for a payroll loan and receive it just immediately
- Your credit scores won’t be checked
If you’re interested in a payroll loan, shop around to get an idea of different fees and repayment terms. If you have to defer your payment date, you’ll probably be charged some fees, so paying on time is important.
Consider turning to a reputable business loan provider and high risk payment processor like firstamericanmercahnt.com if you’re on the lookout for a reliable merchant cash advance broker. First American Merchant is an award-winning alternative online lender that offers the most competitive rates in the industry and exceptional business funding opportunities to merchants of any type. With FAM’s popular cash advance, you can enjoy:
- Approval for credit scores below 500
- Funds within 72 hours
- Simple, flexible programs
- No tax returns or financials
- Fast application process
If you have low scores but are in need of a large amount, a respectable online lender can be the best option for you. Such lenders offer longer payment terms with lower fees. Your credit scores won’t be checked. With a trustworthy online lending platform, you can get up to $100.000 and ask for a loan as small as $2.000. As a rule, fees are transparent and lower. You’ll have from several months to a year to repay your loan and fees.