How Payday Loans Works Fast?

The basic loan process involves a financier providing a short-term unsecured loan to be repaid at the borrower's next paycheck. Typically, some verification of employment or income is involved (via pay stubs and bank statements), although according to one source, some financiers do not verify income or run credit checks

Individual companies and franchises have their own underwriting criteria.

In the traditional retail model, borrowers visit an online payday loans lending platform and secure a small cash loan, with payment due in full at the borrower's next salary. The borrower writes a postdated cheque to the money provider in the full amount of the loan plus fees. On the maturity date, the applicant is expected to return to the store to repay the amount. If the borrower does not repay the borrowed money in person, the lender may redeem the cheque. If the bank account is short on money to cover the check, the borrower may now face a bounced check fee from their bank in addition to the costs of the loan, and the loan may incur extra fees or an increased interest rate (or both) as a result of the failure to pay.

In the more recent innovation of online payday loans, consumers complete the loan application online (or in some instances via fax, especially where documentation is required). The funds are then transferred by direct deposit to the individual's bank account, and the loan refund and/or the finance charge is electronically withdrawn on the borrower's next payday.