What are my options if I don’t need a large loan?

What are my options if I don’t need a large loan?.

The contents on this page have been provided by Beforepay for informational purposes only and do not constitute financial advice. Beforepay is an Australian fintech providing ethical lending products to consumers, including its flagship wage advance product, Pay On Demand™. 

When life happens, so do unexpected expenses, and sometimes that means having to pay for something you don’t immediately have cash for. Sure, you’ve got credit cards and large loans that can help pay for things, but what if they weren’t exactly the best or most cost-effective solution?

In this article we’ll look at how short term money providers like Beforepay, offer a more suitable option for managing your finances and paying for whatever pops up while keeping your debt to a minimum. 

What are short term money providers?

Like most Australians, you might have a rainy day fund that you’ve saved up over time to cover unplanned costs, like car repairs, medical bills or school expenses. This is a great way to help you manage your financial wellbeing, so you’ve got a cash boost if and when you need it. 

But what if your unexpected expenses end up costing more than what you’ve saved up? Or you don’t necessarily want to dip into your savings. And you don’t really need to take out a large $20,000 or $50,000 loan.

Short term loans provide access to small amounts of money, with shorter payment terms. Traditionally these were things like payday loans, but because their fee structures were so high, new companies like Beforepay came in to flip outdated models on their head! 

Beforepay is an ethical short term money provider that puts you in the driver’s seat of your finances. Need money quickly? Sign up and Cash Out between $50 and $2,000 straight into in under 10 minutes (subject to eligibility). Want to know exactly how much you need to pay? Beforepay only charges a 5% fixed fee on the amount you borrow and lets you repay in up to 4 instalments over a period of up to 62 days – no interest, no late fees. Ever.  

Disrupting traditional short term loans like payday lenders (and their excessive and confusing fees), Beforepay offers affordability, convenience and transparency, so you can take care of your unexpected expenses with total peace of mind. Because the last thing you want is more surprises!  

To compare, payday loans can charge an establishment fee that is 20%* of your loan amount and an additional fee that is 4%* of your balance every month, until your loan is paid in full. Late fees and default charges may also apply if you’re unable to pay your loan in full within the terms of your loan contract.

Let’s look at an example to break this down even further. 

What costs are involved with short term money providers?

Financial products work in different ways, with different features like fee structures and time periods for payments, so it’s hard to exactly compare “apples to apples”. 

For the purpose of this example, the calculations assume usage/repayment over 12 months and are based on a $2,000 payday loan on a fortnightly repayment plan over a year, assuming you don't miss a repayment, compared to $2,000 borrowed over a year with Beforepay. Note that Beforepay advances are for a duration of 62 days only.  

The payday loan fees used in this example are based on the common fees charged by payday lenders*, and the below calculations are based on maximum fees, however note this is not representative of every product offering on the market. 



Payday loan

Amount borrowed



Fixed fee


Based on 10 Cash Outs of $200 each across 12 months.

Establishment fee



20% of loan amount*

Estimated total monthly fees



*4% of outstanding balance every month*

Estimated fortnightly repayments



Estimated amount for each of 26 total payments across 12 months

Total repayment



Total estimated cost in fees and other charges over 12 months 



Disclaimer: This comparison is a model, not a prediction. These figures have been included for general information only without considering your personal circumstances. Results are estimates; the actual amounts may be higher or lower. Beforepay eligibility criteria and terms and conditions apply. 



Things to consider

Short term money services like Beforepay offer an easy and affordable solution to help you pay for unexpected expenses if you don’t need a large loan. 

Here are some things you can consider when doing your research to help you decide on what option is suitable for you. 

    • Fees and interest - have a clear understanding of the fees and interest that applies to each of the options you’re considering, and if they are suited to your needs. For example, credit cards may be convenient but if your unexpected expense is high it can leave you with a short period of time to pay off the balance and high interest charges if you can’t afford to pay your full outstanding balance by your payment due date.
  • Speed and convenience - how soon do you need access to extra cash to pay for your unexpected expense? Payday loans can take up to 24 hours for approval and several hours to access the funds in your account. On the other hand, Beforepay can take as little as 10 minutes from sign-up to Cash Out (subject to eligibility), with funds transferred into your account in minutes (up to 2 business days in some cases).
  • Credit score impact - multiple loan applications, particularly in a short period, can have a negative impact on your credit score. If this is something that makes you uncomfortable, you can consider an option like Beforepay that uses custom assessment criteria instead of a credit bureau check, and therefore does not impact your credit score or history.

  • Flexible repayments - considering your financial situation, what are the payment terms that you can meet to avoid paying extra in interest and fees? Payday loans and credit cards can charge late payment fees and interest if you can’t make your required repayments. Credit cards, for example, can charge late fees ranging from $5 to $30 when you miss your minimum monthly repayment. They also come with the added risk of revolving debt, charging daily interest from 8.99% p.a. to 24.99% p.a when you don’t pay your outstanding balance in full. If you prefer flexibility when it comes to your repayments, without any additional costs, Beforepay lets you repay your loan in up to 4 instalments over a period of up to 62 days and doesn’t charge any interest or late fees!

It’s good to have options! 

Unexpected expenses can be a real challenge, especially when you don't have the cash on hand to cover them. While a large loan may be the first solution that comes to mind, it's not the only option, and you can consider short term money providers like Beforepay. 

When choosing an option to help you cover an unexpected expense, remember to consider your personal and financial circumstances and it’s important to review the full terms and conditions of the products you are considering. 

About Beforepay 

Beforepay is an ethical, customer-friendly app that helps people access up to $2000 (subject to eligibility) for a fixed 5% fee to help people manage temporary cash flow challenges. 

Designed to help working Australians take control of their finances, Beforepay also empowers customers with unique spending insights and a bespoke budgeting tool to make money management easy and stress-free. 

New customers and approved Cash Out limit subject to assessment and eligibility criteria. Eligibility requirements include a regular pay cycle (weekly, fortnightly, monthly) deposited into a support bank account linked to your Beforepay account, with a weekly income of more than $300 a week after tax. Centrelink payments cannot make up more than 50% of this amount. View more details here. Terms and conditions apply

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