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Beforepay
Pay Advance
vs Payday Loans
Shouldn’t loans leave you in a better spot than you started? We think so.
Beforepay Pay Advance exists to help working Aussies handle sudden, unexpected, or more-than-expected expenses quickly, easily, and fairly.
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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.
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Transparent pricing
Know what you owe upfront - no hidden costs, no nasty surprises.
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Quick application
Sign up and cash out up to $2,000† in as little as 5 minutes (subject to eligibility, T&Cs apply).
No credit bureau check
Our custom assessment criteria does not impact your credit score or history.
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 in cases where only a fixed 5% fee applies.
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.
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
Pay a 5% fixed fee.- No late fees or default charges.
- Clear, simple terms and pricing.
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
- Can take as little as 5 minutes from sign-up to cash out (subject to eligibility).
- Funds are transferred into your account within minutes (up to 2 business days in some cases).
- No impact on your credit score or credit history.
- 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.
- No impact on your credit score or credit history.
- May impact your credit score, particularly if you are unable to repay the loan within your terms.
Spot the difference
Compare Beforepay Pay Advance and payday lenders side-by-side.
$2,000
$2,000
$100
Based on 10 Cash Outs of $200 each across 12 months.
-
-
$400**
20% of loan amount.*
-
$960**
4% of outstanding balance every month.*
-
$129.23**
Estimated amount for each of 26 total payments across 12 months.
$2,100
$3,360**
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.
Why choose a Beforepay Pay Advance over a payday loan?
Pay Advance is designed to be a safe and affordable way to help you manage temporary cash-flow challenges. The key word is ‘temporary’. We don’t want any Aussies stuck in a debt cycle, worried about how they’ll pay off a loan, or need to reborrow to pay off an existing one. Beforepay is a boost, not a burden.
Chosen by Over 1.7M Aussies
Plan, track, compare, and save with Beforepay’s free finance tools.
FAQs
Everything you need to know.
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A Beforepay Pay Advance is a short-term loan designed for unexpected or more-than-expected expenses. Eligible borrowers can access up to $2,000 with a fixed 5% setup fee, no late fees, and repayments aligned to your pay cycle. Beforepay Pay Advance doesn’t perform credit checks or affect your credit score.
A payday loan is a type of short-term loan that may include an establishment fee, monthly fees and, depending on the lender and your repayment behaviour, late fees or default charges. Each lender’s terms can vary, so it is important to compare the full cost before applying.
No. Beforepay Pay Advance is designed to provide short-term finance support for unexpected or more-than-expected expenses. Pay Advance offers loans with transparent costs, no hidden fees, and repayments aligned to your pay cycle.
Payday loans are another short-term finance option, often characterised by high interest and multiple fees that can add up over the life of a loan. Each lender is different, so it’s worth checking the terms and conditions of each product before borrowing.
Beforepay charges a fixed 5% setup fee, with some customers also charged interest. All fees and costs are shown upfront before you confirm the Pay Advance. There are no hidden costs or fineprint fees.
Payday loan costs can vary by lender and loan structure. Fees can include late fees, early repayment fees, admin fees, establishment fees, failed payment fees, default charges, and more. It’s always important to check the terms and conditions of each loan product before borrowing.
Payday loan fees can vary depending on the lender and the loan terms. Common fees may include an establishment fee, monthly/admin fees, late fees, early repayment fees, default charges, and more. Actual fees may be higher, lower, or different depending on the provider, loan amount, repayment period, and your circumstances.
No. Beforepay Pay Advance does not charge late fees, early repayment fees, or default charges. Pay Advance charges a fixed 5% setup fee and applicable interest, presented upfront before you borrow.
Make sure to review the Pay Advance terms and conditions before cashing out.
The right financial product is different for everyone but things to consider include the total cost, repayment timing/structure, fees, eligibility requirements, and whether the product suits your short-term cash flow needs as well as your long-term financial health.
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