We have all faced an overstretched budget or unforeseen expense at some point in our lives. While traditional lenders might not be able to help if your credit history is less than perfect or you max out your current credit, there are alternatives available.
Some online cash providers even guarantee completion of the entire process within a few hours.
These quick cash alternatives may ease the immediate financial burden you might be facing and provide a repayment schedule that the lender structures around your payday. Although their total interest and fees are higher than traditional lenders, they can assist you with the credit you may need.
⚠️ Warning: be cautious with short-term loans
If you're experiencing financial hardship and would like to speak to someone for free financial counselling, you can call the MoneyTalks helpline operated by FinCap on 0800 345 123. It is open from 8:00am to 5pm, Monday to Friday and 10am to 2pm Saturday. When comparing short term loans, ensure you take into consideration any fees, charges and rates you may be charged.
Alternatives to short-term loans
Consider these alternatives before applying for a payday loan:
Use online Government resources. The Commerce Commission New Zealand website explains how loans works and what to be aware of when borrowing from a lender.
Payment plans. Talk to your electricity, gas, phone or water provider to see if you can work out a payment plan or receive an extension on your due date if you’re behind on payments.
Contact your creditors. Speak with creditors about extending the due date of your payment, or working out a new payment plan that works for both of you.
Seek personal loans elsewhere. Consider a small personal loan from a bank or a credit union. You may qualify for a loan with much lower interest rates than those offered by payday loan companies.
Pay with credit card. Consider paying with your credit card to cover your emergency bills or payments. This is not a long term solution, as you’ll need to pay off the balance as soon as possible, but it’s an alternative to a short term loan with high – and immediate – interest rates.
Ferratum Micro Loan
Ferratum Micro Loan
Borrow from $100
Decision on your online loan in seconds
100% confidential application
Ferratum Micro Loan
New customers with qualifying credit can enjoy 45 days interest and fee free on their first short-term cash loan. Apply today to get approved for up to $1,000.
Max. loan amount: $1,000
Loan term: Up to 45 days
Turnaround time: Same day upon approval
Fees: $28 - $48 Establishment Fee
Easy online application
Flexible repayment schedule
Cash loans – the lenders with which you can apply
Thinking of applying? Here’s how
Compare a wide range of small cash loans online. Remember to compare: The fees and interest rate; the length of the loan term; repayment schedule; turnaround time and any late charges you may incur. Check to make sure you meet the minimum requirements.
Gather your documentation. You need to prove your identity; your income; your address and your assets when applying online. Make sure you have all the necessary information before you apply.
Apply online. After preparing the documentation and comparing your options, you can apply online. Remember, you need to be one-hundred per cent truthful on your loan application, as it forms a legally-binding small credit contract.
How does a cash loan differ from other short-term loans?
These loans usually need to meet short-term requirements and are mostly for less than one year. If the provider accepts your application, it will generally transfer the loan amount to your nominated bank account, and set the repayment schedule according to your capacity to pay, eg payday.
A cash loan works similarly to a payday loan or even a cash advance. You apply for the loan amount you need, submit the documentation and supporting evidence, including the last three months of your bank statements. The lender then assesses your application, which it bases on the information you supply, then gives you a decision.
Online cash lenders often complete the whole process within a brief turnaround time. There are also lenders who specialise in bad credit cash loans and provide them to borrowers who have a less than “perfect” credit history. Other lenders also offer loans to those who receive Work and Income payments.
What you need to know before you start comparing loan providers.
Different lenders specialise in specific types of cash loans. Some provide a quick turnaround time, others offer longer repayment terms, and some provide flexible lending requirements. You can compare the lenders on these parameters:
Find out the complete list of costs. Make sure you check out the lender’s product disclosure statement (PDS), so you know the exact cost of the loan, ie interest rate, fees, etc.
Make sure you meet the eligibility criteria. Some lenders specialise in bad credit cash loans, while others require a reasonable credit score to approve you. Bad credit lenders may also differ on their flexibility, for example, some may lend to those currently bankrupt whereas others will not. It’s important to ensure you meet the provider’s criteria before applying. Credit report companies list each request on your file and too many in short period could be detrimental to any future loan applications. However, if you apply for a no credit check loan, this might not apply.
What is the turnaround time? With the growth of technology, these loan applications are available entirely online. There is no need to be physically present to make a request or provide documents, as you can upload them online. Some lenders will send your loan within a few hours, while others might take a couple of business days to complete the process.
The good (and the not-so-good) cash loan features
You can get cash for different situations. Due to greater variety of lender, it is possible to get cash loans for different personal circumstances. Loans are available for different income levels and all types of credit.
There is a quicker turnaround. The processing time for more conventional loans can be quite long, with a higher requirement for documentation. On the other hand, cash loans are known for their quick disbursal and require less documentation.
You might get stung with higher costs. These loans are generally more expensive than those available through traditional lenders, due to their short-term nature and high fees.
The loans have a shorter duration. People use cash loans for short-term financial requirements and have smaller amounts and a shorter repayment duration. These might not fulfil higher financial requirements and may make them unsuitable for some purposes.
Is there anything I should avoid?
Borrowing money unnecessarily. Due to faster processing and lower checks, these loans might give a feeling of “easy money”, which can lead to spending on unnecessary items, like gadgets or a vacation. You should consider whether you can afford the repayments before you apply, and only take on a loan if you really need it.
Taking on too large a loan. Just like you should consider whether or not to apply for a loan, you should also determine whether you really need the full amount for which you’re asking. A higher loan amount will mean higher ongoing repayments and may make it more difficult for you to manage.
Failing to contact the lender if you have trouble meeting repayments. If you’re going to make a payment late or there are insufficient funds in your account for the direct debit, you need to contact the lender before the repayment is due. Not doing so will see you stuck with late payment, direct-debit dishonour and default fees, which can add a significant amount to what you owe.
What size cash loan can I get?
When taking on credit, it is advisable only to take on what you can afford. Below are some of the standard borrowing amounts.
Cash loans can be quite expensive, so it advisable to only use them for emergencies or if you have an unplanned expense. You may be able to apply for a cash loan if you have a cash-flow issue, such as if your car needs repairs, or a bill is overdue. Of course, it’s important to call your utility provider first to work out a payment plan if possible.
Some examples of the use of cash loans include:
Valentine’s Day. If you have bills to pay and are unable to save for a night out on Valentine’s Day, a short-term cash loan may help.
Concert tickets. Your number one band just announced their reunion tour.
Online sales. It’s the day before payday, and your favourite retailer announces a massive 50% off sale. A small cash loan may get you that new article of clothing.
Birthday presents. Sometimes you may need a little extra to afford the gift you want to buy, and instant cash loans can offer that.
Unplanned trip expenses. If you need to travel and can’t put together the funds before payday, a short-term loan may help.
When considering getting a cash advance online, it’s vital to compare your options – this type of finance can be expensive.
What you probably can’t use a cash loan for
A new car. Cash loans are usually for amounts under $2,000, although may be able to one for a second-hand car.
There are numerous lenders in this market. Some have a minimum income requirement, whereas others provide loans on the back of an asset, using a guarantor or accept Work and Income payments. Click through to the individual review pages of each loan, to see what requirements are in place and if you’re eligible.
Yes, these loans can act as a buffer during such circumstances. Just bear in mind, the lender will take into account any debt you currently have when they determine whether you can afford a loan.
These loans are more expensive than traditional lending options, due to the short-term nature of the repayments and the fees that are higher than usual. Keep these costs in mind before you apply.
If you’re in need of quick business capital or are waiting for customers to pay outstanding invoices, you could consider a cash loan for your business. It’s essential to note that these loans may attract higher interest rates and fees, so arm yourself with as much information as possible.
Sometimes you may need a small amount of cash to get by until payday, which is where a payday cash advance can come in handy.
If you need the money today, it could be worth comparing a range of lenders who offer same-day funding.
It can be tough being a small business owner in New Zealand. You could get a short-term unsecured cash loan and repay it with the next invoice.
If you want to make sure that your online cash loan application receives approval, then this guide may help and is worth reading.
If you want to avoid the hassle of paperwork and faxing, find out how you can apply online for your next loan.
The Financial Markets Authority (FMA) is responsible for regulating cash lending and the payday industry in New Zealand. Each lender must comply with a range of rules and regulations that the FMA design to protect you. Despite all of these precautionary measures, it is still important to research and check the lender’s authenticity.
If you are in this unfortunate position and can’t meet your repayment on the next date, it’s vital you get in contact with the lender. They will attempt to work with you to sort the issue out.
Remember, you typically use these forms of finance for emergency situations, so always compare your options before applying online.
Elizabeth Barry is Finder's global fintech editor. She has written about finance for over five years and has been featured in a range of publications and media including Seven News, the ABC, Mamamia, Dynamic Business and Financy. Elizabeth has a Bachelor of Communications and a Master of Creative Writing from the University of Technology Sydney. In 2017, she received the Highly Commended award for Best New Journalist at The Lizzies. Elizabeth has found writing about innovations in financial services to be her passion (which has surprised no one more than herself).
How likely would you be to recommend finder to a friend or colleague?
Very UnlikelyExtremely Likely
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.