No matter how strong an economy is, there are always those at the bottom of the pyramid. These are the people who live from hand to mouth and often don’t have enough. These are also the people who will often take payday loans, also called cash advances or instant loans which are processed very fast.
Those who go for these loans cannot qualify for credit in institutions like banks. They also cannot qualify for credit cash or loans from employers because they work menial jobs that pay only minimum wages. They may have existing unpaid debt, poor credit ratings or no collateral against which they can take loans. They also in most cases do not assets they can offer as security in order to borrow from an institution like a bank.
Thanks to technological advances, most functions and services in the financial sector are automated. This includes how people access financial services. People can deposit, withdraw, transfer funds, get their bank balances and access other services electronically and at any time through automated teller machines. It is also possible to apply for payday loans electronically.
The applications are done online and once they are processed and approved, the funds are availed as quickly as in a few hours or overnight. A number of the companies with this facility will also have in place customer care centers. Clients can enquire about their applications and see their status.
There is no business that does not face competition. Firms offering these loans compete in the time taken by customers to make out applications, how fast they process them and how fast funds are released. They also compete in terms of the interest they levy on the loans.
To speed up applications, the firms that offer these loans have taken things a step further.
They are processed even faster than standard paycheck loans which are handled quite speedily already. With these loans, customers set up an account online with all their details. These get verified by the loan company and then every time a loan is needed, a request for it is made online. As the account has already been authenticated, funds can be dispensed as fast as in half an hour.
This loan is given with the understanding that it will be paid back in full with the next paycheck the borrower gets. Therefore, the working place of the borrower, their pay and how often they get it is verified. The usual practice was to fax over this documents with an application. This would first be validated before money was given. This way, the loan does live up to its name of being processed and delivered instantly or at least at fast as possible.
Unlike with bank or credit card applications, thorough background checks are therefore not required. Place of work, the amount they earn and that it comes in regularly is all that is verified. And with the verification having been done previously, instant loans applications are soon cash in the pocket.