Faxless payday advances are traditionally a standby credit line arranged in advance with a bank or lending institution in which you have an account or relationship. It is activated without any documentation being faxed to the creditor. However, innovations in consumer finance instruments have made this a loose definition. While cash advance facilities are still available through existing credit cards and as a feature of savings and current accounts, lenders have made it easier for people who lack these credentials to get funds.



The fact that the faxless payday advances are so easily accessible, shouldn't make it every day's source of money. Only in rare circumstances should these funds be drawn upon. If nothing else, excessive bank fees should be of a sufficient deterrent.

Don't treat the faxless payday advance as a cure-all for your financial worries. Not only the maximum amount available is relatively low, often around $1000 a day; but, it carries additional fees and restrictions. Bank regards cash advances as a high risk category, and tries to discourage credit card holders from taking advantage of them. According to the consumer statistics, card holders who use cash advances regularly, tend to default more often on their repayment obligations.

No matter how the economists and financial counselors are trying to discourage Americans from using the faxless payday advances, or any emergency credit facilities for that matter, the number of people using this form of money sourcing is growing very fast. Suffice to say that between 2000 and 2005, the number of payday advance providers have risen 145%. Yes, the business of short term credit is booming. And who are the customers? Mainly those, who have their credit file negatively affected by earlier defaults and bankruptcies. Whether they like it or not, payday lenders advancing credit with annual interest rates often reaching 1000%, are their only hope.

Top cash advance businesses in the US include: Advance America, Check Into Cash and Check N' Go, among others. Not surprisingly, their rate of growth is huge, as demonstrated by the fact that about 10 million Americans took a cask advance money just before Christmas 2005. All these transactions were made offline. Yes, there's a climate for expansion for cash advance services; faxless and all the others.

Normally, banks don't participate directly in advancing cash unless, it's already on your account. Of course, credit card cash advances are one of the exceptions. This leaves the main cash advance business opened to the criticism of profiting form others' financial hardships. On the balance, if there were no customers hungry for cash, this relatively new cash advance industry would grow as fast as it does.

One rather unique faxless payday advance facility is run for the US Military. Its members and their immediate family are able to access cash on a very short notice. This is usually done online. There are very few restrictions, interest rates charged are about 4% lower than on the open market. The only requirements being, that you must be a serving member of the US Military.

Another specialized faxless cash advance is the Pre-Lawsuit Settlement Advance. This is a cash advance facility that is available to complainants to a personal injury court case that will potentially result in a large monetary settlement or award for damages. In many cases, especially if it is a long drawn-out case, the petitioner will find the mounting costs of litigation will necessitate a cash advance to bridge the gap until the result of the lawsuit.

There are companies that specialize in faxless cash advances, sometimes as fast as 72 hours depending on the merits of the case, and the financial company absolves the borrower from liability in case the lawsuit does not prosper. This means the borrower does not have to pay the loan back if no money is forthcoming as a result of the litigation. However, if the litigation is successful, the loan is payable with a cash advance fee of 15%. A penalty that can be avoided, by reading the fine print of the contractual terms.