Unforeseen and important expenses can be a problem to anyone, and they do not come with a prior warning. They just need to be dealt with. You can easily deal with them if you are financially sound, but what if you are not? Now here is when online pay advances help you. A payday loan also known as a paycheck advance is a short term loan meant to cover a borrower’s expenses until he gets his next paycheck or salary. The laws concerning online pay advances can be different for every country.
Online pay advances are a great help for a short duration of time. However, you must be sure about every detail about payday loans before opting for it, in order to avoid any kind of difficulty in the future. There are two broad categories in which payday loans can be classified, retail lending loans and internet lending loans.
Let us discuss the two types of online pay advances in detail. Retail lending loans are the formal kind of payday loans, meaning it is the conventional way of applying for a loan. The person willing to take the loan needs to go the lending office, file an application regarding the loan and submit his required documents. On the approval of the application, the concerned authorities conduct an assessment test on the borrower, and if he passes the loan is approved. In this conventional way the borrower has to submit a post dated cheque which draws the loan amount from the borrower’s account automatically.