A payday loan or paycheck advance is a small, short-term loan (from $100 to $1,500) that is intended to help a borrower with his cashflow before his next paycheck. How much you can borrow will depend on your preference and your income.

Payday loans are sometimes referred to as cash advances. Note that the term cash advance also has another meaning and is more commonly used to mean a cash withdrawal from a prearranged line of credit.

Because there is no collateral, payday loans are usually secured by either

1) The borrower's personal check; or

2) Electronic access to the borrower's bank account.

Lenders hold the checks until the next payday when loans (and the finance charge) must be paid in full. In some cases, borrowers will just pay the finance charge so as to roll the loan over for another pay period.