Payday Loans are for those in Employment

Payday loans are only available to those who are in gainful employment. This is because the day on which the borrower is paid forms the very foundation of this type of loan. The borrower receives a cash advance on his or her salary. The lender knows exactly what day the borrower will next be paid by their employer as he or she will have had to submit copies of their latest payslips in order to be approved for the loan. The repayment date for loan is then set as the same date as the borrower’s payday. Most lenders will automatically take the repayment from the borrower’s bank account. In the event that the loan is taken out at high-street lending store, the borrower will be required to sign a post dated cheque which would be cashed by the loan company should the borrower  fail to return to the store to make the repayment on the due date.