I feel like I should chime in here, and defend Playfully as a legit company that is not a 'scam' and will not ruin your bank account. Remember, we give ABB our bank account info as well!
After the first thread on Payfully here, I set up and account on Payfully just to see what is was all about, the TOS, how much they were really charging etc. I spoke with a a great rep, forget their name, and was offered a free trial. Given that I didn't have an immediate need for the money, I decided to use the free trail on my next reservation, to test out the service.
I have a strict cancellation policy so I felt confident taking the the Payfully loan for a reservation that was at the 7 Day cancellation mark, so that if the guests were to cancel I would get paid anyway. As other have stated if the guest found a bed bug, rodent, or something out of my control happened, and they cancelled and were refunded via ABB, I would have been on the hook for the loan the amount.
Also, note based on your ABB history and number of upcoming reservations, you will have a 'limit' of how much you can take as a loan. Mine was $2500, so the reservation I 'loaned' against was somewhere around $5k but i was only given $2500. Payfully said the limit increases if you successfully payback loans etc, but if you are using payfully on a regular basis there are some other issues we should be talking about.
The process was simple, I picked a reservation it showed the 'Fee' which bc the reservation was less than a certain time period away was about 3%. The fee increases the further out the reservation is. For example I just logged into my Payfully account to write this and the fee for an advance on a reservation 16 days out is 3% and 6% on a reservation 48 days out. So, cheaper than using a credit card.
Once you select the reservation you want to borrow against you click the 'apply' button, and there's a DocUsign-esque document that you basically agree to have Playfully debit your bank account X amount of days after checkin, to repay the loan you took from them. I signed the doc, was approved, and money was in my account in 48 hours. They have now reduced the the time period to 24 hours.
Re-Payment was just as simple, I think it was 2-3 days after my reservation checked in, Payfully deducted the loan amount, and all was right in the world.
As other have clearly outlined, if you can't pay back the loan, don't use this service. However, Payfully makes it pretty idiot proof. I'm sure you could use the Payfully loan, then use your ABB payout before Payfully collects, but then you would be in a world of hurt. Doesn't seem worth it.
I agree with the few posters that this is a good SHORT TERM option if you are in a real pickle and need cash. I think the comments about a 2nd mortgage for $2000 seems a bit silly, and if you need cash immediately, waiting 60 days for a HELOC/2nd mortgage to close is not the best option. Like with any type of credit, you need to be careful and not abuse Payfully.
As for Payfully being predatory, how are they any more predatory that Credit Cards? They are not forcing you to use their service, they are given you a very competitive interest rate and our just another company in the 'short term loan' space. This is clearly a better option for people in need, versus going to a 'Pay Day Loan' center of something or equal elk.
Hope my 2 units of currency was helpful!
(Other than the free trail I got on my own volition for having $20k of pending reservations, I was given nothing for writing this, and I'm not affiliated with Payfully)