Do you ever wonder why it costs $10, $15, $20 or even more to borrow $100 from a payday lender?  There are quite a few reasons, but one reason is that it is expensive for payday lenders to process and issue payday loans.  It takes time, people, and resources to handle each loan application.  Lenders also have to deal (and budget) for the fact that some borrowers can't (or don't) payback their loans when they are due.  This is referred to as "bad debt", and it is expensive for lenders to deal with bad debt.  

A recent survey by the Canadian Payday Loan Association shows how expensive it is for a payday lender to issue payday loans.   The survey was done by Deloitte & Touche, and concluded that the average cost to issue and process a $100 payday loan is over $25.

The survey factored in operating costs, cost of capital, cost of supplementary capital (infrastructure and working capital), and bad debts. Operating costs were the biggest expense.  Here are the details from the survey (they show the cost to the lender for issuing each $100 loan):

- Operating costs: $20.43

- Cost of supplementary capital: $1.57

- Cost of capital: $0.52

- Bad debt costs: $2.69

Obviously, if payday lenders can't make a profit, they will go out of business.  While some might argue that would be a good thing, folks who need emergency cash will be left without options. 

Lots of people search for "online payday loans with no faxing or credit checks".  They want to find lenders who will process a payday loan application quickly and without any need to fax documents.  They also want to find lenders who do not perform credit checks on loan applications.  NextDayCheck works with a large network of lenders who do not require faxing and who do not perform credit checks.  Instead, the lenders check databases such as Telecheck or Teletrack to find out if you have a bad history with payday lenders.  There is no credit check performed.

Another question we frequently hear is whether there is such a thing as "no faxing payday loans low fees"?  That is, is it possible to really find an online payday loan which (1) does not require faxing of documents, and (2) which has relatively low fees?  The short answer is "yes".  Advances in Internet and processing technologies have made it easier for online payday lenders to process payday loan applications quickly and efficiently.  Most online lenders do not require faxing of documents to complete a loan application.  You simply enter all of the application information (make sure to be accurate and honest!), and their processing systems do the work on figuring out if you qualify for a loan.  You don't even need to print and sign a loan agreement anymore — you just "electronically" sign the loan agreement.  The funds are then deposited into your bank account the next business day.  Due to competition, many lenders offer low fees as well.  Simply review your loan agreement carefully before signing it to find out how much the loan fees are. Get no faxing payday loans low fees today.

The State of New York is one of several States in the US that does not have specific payday lending provisions.  That is, New York does not allow payday lending.  There are, however, several lenders who claim to be able to provide payday loans to residents of New York State.  They may be able to do this by partnering with a federal bank or by being based outside the US.  There are several lenders in the network used by NextDayCheck that may be able to help you if you are looking for payday loans in New York State. As always, read the loan agreement carefully before agreeing to a loan.

Lots of web sites advertise "Nothing to Fax Payday Loans".  What does that mean?  Well, in the past, when you applied for a payday loan or cash advance on the Internet, you were often required to print and fax a few documents to the lender so they could determine whether you were who you said you were and whether you could afford the loan.  For example, lenders would ask for you to fax a copy of your drivers license and one or two recent bank statements.  Then, as technology got better, lenders were able to check your identity electronically (by consulting databases and other systems) and to confirm that your bank account was open and in good standing.  As a result, in the last few years, nothing to fax payday loans are now available, making it easier for folks to get emergency cash when they need it.