One of the new services being offered by companies providing financial services are payday advances. As the name suggests the finance company will provide a short term loan against the customers next pay check. This is a great way for anyone to access cash when they need it and this kind of service is becoming more and more popular for a number of reasons:
* A payday advance is a quick and easy way to raise cash
* Taking advantage of this kind of service means an employee no longer faces the embarrassment of having to ask their employer, friend or family member for an advance on forthcoming wages
* The cost of taking out a payday advance with a high street finance company can be up to four times cheaper than an unauthorised overdraft with a bank
* A payday advance can be used to take care of unforeseen expenses or bills without having to wait until the next pay check from an employer
* Obtaining a payday advance is so much more simple and convenient than trying to arrange an overdraft or short term loan with a bank
* A payday advance allows the customer to unlock their cash and take control of their finances
From those reasons given above it is probably the ease and convenience of payday advances that makes them so appealing to the public. Many of us count down the days to the next payday but being able to take out an advance or short term loan against that distant pay check makes managing their finances so much easier for many people.
The beauty of a payday advance is that it is very easy to arrange. In the UK a customer must be over the age of 18 and must usually be working at least 16 hours per week. Before receiving their first payday advance they will have to prove their identity. They will need to be able to show their last bank statement, wage slip, cheque book and cheque guarantee card and possibly other ID. There is then a short form to complete, and the customer goes home with the cash in his walle.
It is the simplicity of this serve that is persuading the public to turn to the new money shops and financial companies on the high street rather than the banks. This new breed of financial company don’t just offer payday advances but also services such as cheque cashing, money transfers, short term loans and unsecured loans.
These new financial companies are providing stiff competition to the banks, because of the instant nature, and sometimes cheaper aspect of their services money shops should not continue to increase.