Why APR (Annual percentage rate) is not a useful way to measure the cost of short-term loans
APR or annual percentage rate reflects the interest and fees paid over a year. It helps us compare the costs of traditional loans that run for years but can be misleading when comparing loans running for less than a year.
Our loans are on average $400 for 21 days, running for 45 days max. If we charged a commercial banking rate of 12% for our small, short-term cash advances, we'd be out of business - unable to provide the service. The revenue wouldn't even cover our rent.
It's like catching a taxi. You wouldn't catch a taxi to work everyday or for long trips. It's for occasional use, only when you really need it. If taxi drivers charged the same rate/km as a flight to London, they'd be out of business.
There's a convenience aspect too. It's cheaper to walk 4 hours, hitch hike or take a bus, but most people will pay extra for speed, 24/7 availability, and safety.
It's best to weigh up the amount you borrow with the cost of repayments. That's why we provide all the information as clearly as possible. Then it's up to you to decide.
It's easy. Get cash and get on with your life.
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