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Why choose a Beforepay Pay Advance over a payday loan?

The Beforepay Pay Advance, unlike payday loans, is designed to be a safe and affordable way to help you manage temporary cash-flow challenges, so you never need to go near a payday lender again.

  • Beforepay - Low fees

    Low fees

    Just a 5% fixed transaction fee - no interest, no late fees, no hidden costs.

  • Beforepay - Speedy service

    Quick application

    Sign up and cash out up to $2,000 in as little as 10 minutes (subject to eligibility, T&Cs apply).

  • Beforepay - Cash on demand

    No credit bureau check

    Our custom assessment criteria does not impact your credit score or history.

Customer testimonial saying Beforepay Pay Advance is a better alternative to payday loans and payday lenders.
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How does Beforepay’s Pay Advance compare to payday loans?

Beforepay was founded to disrupt payday loans and payday lending, providing safe and affordable loans to working Australians.

Here are how the two products compare.

Fees

Pay Advance

2-1 Pay a flat 5% fixed fee when you cash out.
2-1 No interest. APR is 0%.
2-1 No late fees or default charges.
2-1 No admin fees or other ongoing costs.

Payday Loans

Pay an establishment fee that is 20%* of your loan amount.
Pay an additional 4%* of your balance every month, until your loan is paid in full.
Late fees and default charges may apply if you’re unable to pay your loan in full within the terms.

Speed & security

Pay Advance

2-1 Can take as little as 5 minutes from sign-up to cash out (subject to eligibility).
2-1 Funds are transferred into your account within minutes (up to 2 business days in some cases).
2-1 No impact on your credit score or credit history.
2-1 No contact with your employer required - syncs with your bank to verify your eligibility.

Payday Loans

Can take up to 24 hours for approval.
Can take several hours to access the funds in your account.
May impact your credit score, particularly if you are unable to repay the loan within your terms.

Notes on comparing Beforepay Pay Advance to payday loans

Financial products work in different ways, with different features like fee structures and time periods for payments, so it’s hard to compare “apples to apples”.
 
The calculations assume usage/repayment over 12 months and are based on a $2,000 payday loan on a fortnightly repayment plan over a year, assuming you don't miss a repayment, compared to $2,000 borrowed over a year through Beforepay’s Pay Advance product. Note that the Beforepay Pay Advance is for a maximum duration of 62 days only (there is no minimum repayment period).
 
The below table compares the estimated 12-month cost from fees and interest on a payday loan and a Beforepay Pay Advance.
 
Each payday lender will have its own fee structure, and your fees will depend on how much you borrow. The associated fees are capped at a 20% establishment fee and a 4% monthly fee on the outstanding balance.
 
The payday loan fees used in this example are based on the common fees charged by payday lenders.* The below calculations are based on maximum fees, however note that this is not representative of every product offering on the market.The below calculations are based on maximum fees, however note that this is not representative of every product offering on the market.
 
Applicable fees and interest rates are estimates only, they are not representative of every product offering on the market.  
 

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Pay Advance

Payday loans

Amount Borrowed

$2,000

$2,000

Fixed Fee

$100
 
Based on 10 Cash Outs of $200 each across 12 months.

-

Establishment Fee

-

$400**
 
20% of loan amount.*

Estimated Total Monthly Fees

-

$960**
 
4% of outstanding balance every month.*

Estimated Fortnightly Repayments

-

$129.23**
 
Estimated amount for each of 26 total payments across 12 months.

Total Repayment

$2,100

$3,360**

Total estimated cost in fees and other charges over 12 months

$100

$1,360**

 

Disclaimer: This comparison is a model, not a prediction. These figures have been included for general information only without considering your personal circumstances. Results are estimates; the actual amounts may be higher or lower.

Beforepay T&Cs apply.  Beforepay Group Ltd, ABN: 63 633 925 505. Beforepay allows eligible customers to access their pay and provides budgeting tools. Beforepay does not provide financial products, financial advice or credit products. The views provided in this article include factual information and the personal opinions of relevant Beforepay staff and do not constitute financial advice. Beforepay and its related bodies corporate make no representation or warranty, express or implied, as to the accuracy, completeness, timeliness or reliability of the contents of this page and do not accept any liability for any loss whatsoever arising from the use of this information. Please read our Terms of Service carefully before deciding whether to use any of our services.

*https://moneysmart.gov.au/loans/payday-loans

**https://moneysmart.gov.au/loans/payday-loan-calculator

How to get a Pay Advance with Beforepay

Accessing cash with a Beforepay Pay Advance for a 5% fixed fee may be a more affordable alternative to payday loans to help you manage temporary cash flow challenges.

Get started with Beforepay today!

 

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