Loan Term

People taking out payday loans usually have two questions: “How long until I get my money?” and “How long until I have to pay it back?” The answers can vary based on whether the borrower is taking out a 9 day payday loan or a 90 day payday loan.

Processing Time
Payday loans and cash advances are funded by independent lending institutions, so approval and processing times can vary. Large loan amounts and lengthy repayment periods may require more thorough reviews and additional underwriting. The quickest lenders can have money wired to a bank in under an hour after a loan application has been reviewed and approved. The slowest lenders can take weeks to look at borrower details, make a funding decision, and initiate an electronic funds transfer. The industry average is about one day for approval and another one to three business days for bank processing.

Borrowers must keep in mind that their banks are partially responsible for how fast cash can be transferred into a checking or savings account. Payday loan companies have no control over deposit speed once the money leaves their accounts.

Lending Periods
All cash advances are intended to offer short-term financial help for emergencies and unexpected expenses. They are not long-term credit accounts like mortgages, car loans, personal loans, or even credit card accounts. At the same time, some loan periods are shorter than others. Lending timeframes are based on state laws, borrower pay dates, and lender guidelines. To simplify the situation, a short-term cash advance is defined as a temporary loan lasting 30 days or less, while a long-term cash advance is lent for more than 30 days.

Short Term Cash Advance
In the case of a loan without a prepayment penalty, the shortest payday loan could be as simple as withdrawing loan proceeds from a bank account, receiving an unexpected windfall, and repaying the loan on the same day. More likely the payday loan will last until a person’s next paycheck, typically one week, two weeks, or four weeks out.

Short term payday loans generally offer the same principal amounts as loans stretched over months. Borrowers can take out up to $1500, and because the loans are repaid sooner, the fees are usually smaller. On the loan’s due date, the original loan amount plus interest or fees is deducted from the bank account where the loans funds had been deposited.

Cash Advance Long Term
Some people need a bridge loan but cannot afford to start repayment until more than one month has passed. In these cases, long term cash advance loans are the solution. Long-term loans are typically designed in one of three ways:
Regular cash advance. A limited number of states permit lenders and borrowers to negotiate their own contract terms without regulatory interference. In these situations, borrowers can get 90 day payday loans no credit check under similar terms as a one week payday loan.
Rollover cash advance. Some states authorize lenders to rollover a cash advance one or two times if the payment cannot be made as agreed. If the customer originally had a 30 day payday loan, the lender waits until the due date and then takes out a new loan to replace the unpaid one. Short-term cash loans can then evolve into 60 day payday loans or even 3 month payday loans.
Long term payday loan with alternative credit. As a final option, borrowers can take out a 30 day cash advance and then roll the balance into an alternative credit account, such as a home equity line. These supplementary accounts usually offer lower interest rates. They may or may not be provided by the same payday loan lender.
Long term payday loans are an effective way to get $300, $500, or even $1500 without worrying about paying back the debt within a couple of weeks. The loan proceeds are still transferred into a checking account electronically, and the payment comes out the same way. Fees are higher with a long term cash advance because the account accrues interest over a greater number of days.

Whether a person is looking for 2 week cash advances, 30 day payday loans online, or 90 day cash advance loans, lenders are prepared to offer fast payouts and affordable repayment terms. A qualified lender can explain the various options and prepare a loan package that meets everyone’s needs.