A payday loan is a small, short-term loan, usually used to cover a cost before your next pay. In Australia it's also called a small amount credit contract, or SACC. You can borrow up to $2,000 and repay it over 16 days to one year.
Payday lenders have to follow specific rules under Australian credit law:
Those caps are maximums, but Moneysmart notes that most payday lenders charge the full 20% and 4%. Because the monthly fee applies for every month of the loan, the total cost keeps climbing the longer you take to repay.
A Beforepay Pay Advance is a short-term loan of $50 to $2,000† for unexpected or more-than-expected costs. You repay it within 62 days, in up to 4 instalments lined up with your pay. There's a 5% setup fee plus interest of up to 24% p.a., with no late fees and no early repayment fees.
We don't run a credit check. Instead, we look at your income and spending to check the repayments are affordable. Beforepay is not a payday lender.
Cost. A payday loan stacks a 20% establishment fee on top of a 4% monthly fee. A Pay Advance has one 5% setup fee plus interest of up to 24% p.a. On a $500 loan over two months, that's up to about $43 compared with $140.
Term. Payday loans run from 16 days to a year, and the monthly fee keeps applying the whole time. A Pay Advance is repaid within 62 days, in instalments lined up with your pay.
Credit checks. Payday lenders may check your credit file, depending on the lender. Beforepay doesn't run a credit check for Pay Advance. We look at your income and spending instead.
Late fees. Payday lenders can charge default fees if you miss a repayment. Beforepay has no late fees and no early repayment fees. If you're finding repayments hard, our hardship team can help.
Borrowing again. You can hold one Beforepay loan at a time, and we reassess you every time you apply. That helps avoid a cycle of borrowing to repay borrowing.
Speed. Both are quick. Beforepay applications are typically approved in under 60 seconds, and approved Pay Advance funds can land in as little as 5 minutes after you accept.
Here's what borrowing $500 for about two months could cost. The payday loan uses the maximum fees Moneysmart says most payday lenders charge. The Pay Advance uses the maximum interest rate charged on the full $500 for the whole period, so it's a worst case for us.
This comparison is a model, not a quote. Payday loan figures assume the maximum 20% establishment fee and 4% monthly fee that Moneysmart says most payday lenders charge. Pay Advance figures assume the maximum interest rate of 24% p.a. charged on the full $500 for 56 days. Actual interest is usually lower, because the balance drops with each repayment. Your actual cost depends on the amount, the term and your circumstances, and is set out in your contract before you accept. Current as at November 2026.
Terms and conditions apply. All applications are subject to credit assessment, eligibility criteria and lending limits. Information provided is factual information only, and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser. BPG Credit Pty Ltd, ABN 59 673 570 575, Australian Credit Licence 554659, is the credit provider for Beforepay Personal Loans. Beforepay Pay Advance is offered by Beforepay Finance Pty Ltd, ABN 45 636 670 525. Both entities are subsidiaries of Beforepay Group Limited, ABN 63 633 925 505. Level 9, Suite 1, 77 Castlereagh Street, Sydney NSW 2000.
A Pay Advance may suit a one-off cost you can comfortably repay from your next few pays. If you need more than $2,000 for a planned cost, a Personal Loan of $2,001 to $5,000† may fit better.
Neither is the right answer if you're borrowing to cover everyday living costs again and again. Before you borrow, it's worth checking:
Whatever you choose, only borrow what you can comfortably repay. See how Beforepay works and check our eligibility criteria. Approval isn't guaranteed and eligibility criteria apply.
† Approved loan amounts are subject to Beforepay's lending criteria and verification requirements.
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Create an account by either signing up online or downloading the Beforepay app on Google Play or the Apple App Store.
Link your bank to your Beforepay account. We are compatible with most major banking institutions in Australia.
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Instant Advance up to $2,000 or personal loans up to $5,000. Approved in minutes.
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Create an account by either signing up online or downloading the Beforepay app on Google Play or the Apple App Store.
Link your bank to your Beforepay account. We are compatible with most major banking institutions in Australia.
Instant Advance up to $2,000 or personal loans up to $5,000. Approved in minutes.
Plan, track, compare, and save with Beforepay’s free finance tools.
Everything you need to know.
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A Beforepay Pay Advance is a short-term loan of $50 to $2,000 for unexpected or more-than-expected costs. It has a 5% setup fee plus interest of up to 24% p.a., no late fees, no credit check, and repayments lined up with your pay over a maximum of 62 days. A payday loan is a small amount credit contract of up to $2,000 over 16 days to a year, usually with a 20% establishment fee and a 4% monthly fee. Terms vary by lender, so compare the full cost before you apply.
On a $500 loan over about two months, a Pay Advance costs up to about $43 (a $25 setup fee plus interest at a maximum of 24% p.a.). A payday loan charging the usual maximum fees costs $140 (a $100 establishment fee plus $40 in monthly fees). Your actual Pay Advance cost is shown before you accept.
Yes. Payday loans, also called small amount credit contracts, are legal and regulated. Lenders must hold a credit licence, fees are capped at a 20% establishment fee and a 4% monthly fee, and loans under $2,000 that must be repaid within 15 days are banned.
If the lender charges the maximum fees, a $500 payday loan costs $100 upfront plus $20 for every month you have it. Over two months, that's $140 in fees and $640 to repay in total.
Contact your lender as soon as you can and ask about a hardship arrangement. Lenders can charge default fees, so it's worth acting early. Free, confidential help is also available from the National Debt Helpline on 1800 007 007.
Payday loan fees vary by lender and loan terms. Common fees include an establishment fee (often up to 20% of the amount borrowed), a monthly fee (often up to 4% of the balance), and sometimes late fees, early repayment fees or default charges. Actual fees depend on the provider, amount, term and your circumstances.
No. A Beforepay Pay Advance does not charge late fees, early repayment fees or default charges. It charges a fixed 5% transaction fee and any applicable interest, all presented upfront before you borrow. Review the Pay Advance terms and conditions before you cash out.
No. A Beforepay Pay Advance is designed for short-term support with transparent costs, no hidden fees, and repayments aligned to your pay cycle. Payday loans are another short-term option, often with higher fees that can add up over the life of a loan. Each lender is different, so check the terms and conditions of any product before borrowing.
The right product is different for everyone, but things to weigh up include the total cost, the repayment timing and structure, the fees, eligibility requirements, and whether the product suits both your short-term cash-flow need and your longer-term financial wellbeing.
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