Wage day advance loans

What is a wage day advance?

If you have an urgent expense you need to cover, some people might contact their employer to formally request a pay day advance. This is a type of loan employers sometimes offer where the employer agrees to loan you your salary in advance of your next pay day. The funds are often taken out of your next pay packet, and there may be interest rates associated.

If your employer doesn’t offer pay advance loans, there may be other options available to temporarily stretch your income and help cover sudden expenses. When used responsibly, and as necessary, a short-term loan, payday loan or emergency loan may be a helpful alternative to a wage advance loan from an employer.

Here at Moneyboat, our responsible short-term loans can give you the choice to repay over 2 to 6 months, depending on what suits you best.

Representative Example: Borrow £400 for 4 months: 3 monthly repayments of £156.09 followed by a final repayment of £156.07. Total repayment £624.34. Interest rate p.a. (fixed) 288.35%. Representative 1,267.9% APR.

If you need a salary advance, our fair and flexible loans could help

New customers can borrow from £200 to £800. Our short-term loans can be used like a salary advance and are repayable over a minimum of 2 months and up to a maximum of 6 months. This means that you don’t have to repay the entire balance of your loan by your next payday. The minimum duration for the first instalment is five days.

Existing customers can borrow up to £1,500, subject to passing our credit and affordability checks. We do not require full repayment in 60 days, but customers may pay back their loans early with no penalties or fees for a maximum of six months.

Warning: Late repayments can cause you serious money problems. For help, go to www.moneyhelper.org.uk.

Representative Example: Borrow £400 for 4 months: 3 monthly repayments of £156.09 followed by a final repayment of £156.07. Total repayment £624.34. Interest rate p.a. (fixed) 288.35%. Representative APR 1,267.9%. 

Compare Moneyboat loans.

What’s the difference between a payday loan and a short-term loan if you need a wage advance?

Our short-term loans can give you quick access to funds ahead of your next pay cheque to help tide you over in a financial pinch. Payday loans can also offer money in your bank account quickly, but there are a few key differences:

• Repayment terms: You’ll often be asked to repay payday loans in full by your next pay day. Our short-term loan lets you repay in flexible instalments, with the opportunity to repay in full if you prefer.
• Flexibility: Our short-term borrowing options could give you extra breathing room with repayment terms tailored to you and your budget.
• Affordability: With more repayment options available, choosing how you want to repay your loan could help you spread the cost over a longer period of time.

Is borrowing right for you?

Before you commit to any credit application, it’s important to check in with yourself and consider whether you can afford it. If you’re struggling to keep up with your priority bills or you’re not sure where you’ll get the cash to make your repayments, borrowing might not be the right decision for now.

No matter if you’re applying for a short-term loan with us, or considering other credit and payday loan options, a wage advance is best used for emergencies and short-term financial relief. If you apply with us, we’ll always check your affordability to ensure you can manage your loan repayments.

What are the benefits of a Moneyboat  loan?

Our short-term loans can offer a range of potential advantages when compared to other alternatives. One of the main benefits is being able to cover an emergency cost if your budget can’t quite stretch to meet it. If you can’t access a  salary advance loan from your employer, our responsible loans could help you arrange urgent car and appliance repairs, or pay off unexpected bills, if you’re eligible.

Additional benefits include:

Manageable loan amounts

Our flexible short-term loans could let you borrow and repay money  in amounts ranging from £200 to £800.  Loans are meant to help with emergency needs and immediate expenses rather than significant outlays. Borrowing less money means there’s less to pay back, and therefore less interest to pay, which can build up in the long-term.

Shorter terms

Instead of making payments over the course of several months or years as you would with larger, traditional loans, you’ll pay back your short-term wage day advance over a short period of time. Shorter terms mean you’ll settle your debt faster, and you can fall back into your normal financial routine before you know it.

Immediate cash

With conventional loans, the approval process can take anywhere from a few days to a few weeks. Our responsible loans can help you pay for costs quickly as if you’ve had an urgent advance on your pay day. If you’re approved, you could receive funds in your bank account within 15 minutes to a few hours.

No guarantor necessary

Most responsible short-term lenders have eligibility criteria that they’ll expect you to meet. With Moneyboat, you won’t need a guarantor to apply for our short-term loans. We can offer a suitable loan solution based on your unique requirements, credit history and affordability.

What does this mean to me?

In short, this route gives you almost instant access to the money you need for any type of last-minute expense. You don’t have to have a perfect credit score in order to qualify, and you won’t need to spend several months dedicating a portion of your income to repayment. It’s a short-term loan option for the immediate term, designed to be simple, small-scale and readily available.

Short-term loans from a direct lender

We lend directly, we’re not a broker

Unlike UK brokers who aren’t lenders themselves, we’re an official direct lender of responsible short-term loans. This means that we provide the money you need directly to your bank.

Easy application process

We’ve made our online loan application process as easy as possible, allowing credit applicants to understand everything from start to finish. It also means that we don’t ask any unnecessary or complicated questions to confuse the process.

Wage day loans for unexpected costs

No one expects to be caught short financially. Sometimes, short-term loans can help tide you over until you get back on your feet. Talk to our friendly loans team today to see if an online short term loan is the best option for you.

Wage day advance FAQs

How can I apply for a short-term loan?

Our hassle-free short-term loans are a flexible alternative to salary advance loans. Simply follow the steps below to apply:

1. Select “Apply now” and complete our free and easy online application form
2. We’ll begin our credit and affordability checks to see if you’re a good fit
3. Sign and send back your loan agreement, which we’ll send you via email if you’re approved
4. Receive your loan directly into your UK bank account

Your money should appear quickly depending on whether your bank allows same-day access to deposits. If not, you’ll be able to use the money by the following day.

What is the criteria to apply for a Moneyboat loan?

To apply for one of our short-term loans as a salary advance, you must meet the following criteria: 

• You must be at least 18 years old
• You must be in full or part-time employment
• You must receive a minimum NET pay of £1,000 per month
• You must be a holder of a UK bank account and debit card

Do any fees apply?

There are no hidden fees with Moneyboat loans. The interest charged on our loans is 0.79% per day (representative APR 1,267.9%) and is only calculated on the outstanding capital balance at any given time. Interest is multiplied by the total amount of your loan and accrues daily. Aside from a charge for any late payments, this is the only fee you’ll encounter.

What about repayment?

Usually, payment dates are based on your own pay schedule. Your first repayment will be due no less than 21 days from the date your loan was taken out regardless of your next payday. When you’re filling out your application, you’ll be given a choice of three different repayment terms:

• One pay period: You may choose to repay the entire amount of your loan plus interest on your first wage day after receipt once the 21-day minimum grace period has passed.

• Two pay periods: You may also have the option to pay back your loan over the course of two pay periods. On your first scheduled payment date, you’ll pay the accrued interest up to that point with the original loan amount and further interest due for the following payment.

• Three pay periods: If you opt for this choice, your first two payments will consist of accrued interest, and the final payment will include the initial loan amount plus additional interest.

We’ll give you a clear summary of your payment dates and amounts before you begin the repayment process. After this, we’ll help you set up automatic withdrawal of payments from your bank account or prepaid debit card.

If you’re in a position to pay more than the minimum payment, you’re welcome to do so without penalties or additional fees. In fact, this can help reduce the overall amount of interest you’ll pay.

Are there any other details I need to be aware of?

Choosing a short-term loan as an alternative to a pay advance can be a helpful option for those facing unexpected expenses. It can also help provide breathing space if you’re suddenly struggling to keep up with short-term bills on a tighter budget. However, whether it’s from a direct lender or your employer, applying for short-term loans and pay day advance loans is not a sustainable solution for long-term financial difficulties.

It's important to keep in mind:

• Make your payments on time to avoid late fees: Lenders understand that extenuating circumstances are sometimes inevitable. But it will end up costing more, in the long run, to delay or miss a repayment. Please contact us as soon as you think you might miss a repayment. That way we can work with you to find a solution.
• Deferral options are available in some cases: However, you should only consider this option if it’s absolutely necessary to avoid paying extra in interest.
• Never borrow more than you need: If you only need £200, but you know £500 is available, the temptation might speak louder than sound reasoning. Taking the maximum will leave you repaying more in the long run, especially with daily interest figured into the equation.
• Weigh your options carefully: Some borrowers have found themselves feeling stuck in debt by not using loan advances responsibly. Reserve borrowing for infrequent emergencies to help you keep your credit utilisation and debt to a minimum.

Should I borrow money as a pay day advance?

For those times when your income won’t stretch far enough to cover your needs, using a short-term loan like a payday advance loan could temporarily help to close the gap should you fall on challenging times. But before you apply for any type of credit, it’s often a good idea to consider the practical factors. Ask yourself the following questions before deciding whether a loan is right for you:

• Do I need the money?
• Is there an alternative way to get the money without borrowing?
• Am I comfortable with how much this is going to cost me?
• Is the lender trustworthy?
• Can I afford the repayments?
• Is my income stable?
• Do I meet the loan criteria?
• How strong is my credit score?

Where can I get free financial advice in the UK?

If you’re looking for free, independent advice about borrowing and your finances, there are plenty of third-party organisations that can help.

• MoneyHelper: A government service offering free financial advice by chat, WhatsApp or phone
• National Debtline: Free and independent debt advice by phone or chat
• StepChange: Free debt advice by app or phone
• Shelter: Free advice on debt, housing and healthcare by phone and chat
• Citizens Advice: Free debt support

Don’t forget, you can also speak with your service providers about alternative repayment options, or speak with your loved ones for guidance. For more financial tips and insights, explore our guides on personal cash flow budgeting and financial wellbeing tips and support.