Payfully loans - Are we safe to do that?

I think my review of the product was pretty straight forward down the path of only do this if you HAVE TO. I do not think this is a long term solution, for people to utilize. However, if you need $1000 right NOW it may be a better option than putting it on a Credit Card since the interest is quite reasonable.

I think @KKC made a very good point that goes down the road as its hard to see someone else’s perspective until you have stepped into their shoes. There are many people living pay check to pay check, and the need for short term loans exists and is very profitable int he US. This company is capitalizing on that, and doing it in a way that is collateral based so the loanee is not paying through the roof. Since i took the loan as an experiment, I do not know what happens if you don’t pay it back, and maybe Payfully starts to fall into the ‘predatory’ lending camp at that point. However, if you take the loan with the clear intention of paying it back via your ABB payout, it is a far better (and possibly the only) option for some people.

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I know that road and I know those shoes. Proceed with caution.

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My guests almost never cancel as I have a strict policy and if they do I get to keep a lot of their money anyway and re-book. If you dont have to pay interest that sounds like a good deal if you need a short term loan.

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Just to be clear I did this as an experiment in orderto report back to the forum, given the previous interest in this topic (then got distracted and forgot to post my findings until now :stuck_out_tongue_closed_eyes::stuck_out_tongue_closed_eyes:)

Was reading an article on Payfully this morning and was triggered to find out what happens if a guest cancels. Here is what is on there website…

'What if my guest cancels after I have received the funds?

You have 60 days to make another booking at no extra charge to cover the advance. After that we will work with you to find reasonable alternative payment options. We’ll make it easy to work with us!’

This is the language from their website and it’s exactly my point. It’s a safe guess that as they don’t tell you what the interest rate will be if you need to repay, it will be usurious. They say they make it easy to work with them, not inexpensive.

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Unless they have a hangnail and doctors note, or decide that a bug scared them and get a full refund.

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I am just updating the topic to provide more infor to the forum.

My guess is that there is a US law that would require them to disclose any interest rate on repayment, if not done on the agreed upon date, and you would have to enter into a new contract so something similar. Given how many laws govern credit cards and loans, I would highly doubt Payfully would not disclose the interest rate. Since they are a newish start up, there is a chance that they have not encountered the scenario of someone not repaying.

Wow thanks for capturing everything that was in my head.

I have used payfully for a few months now. As a startup I wondered about legitimacy & how volatile they can be. After doing some research they’re backed by legit VC’s.

IS THIS FOR YOU??

Depends on your situation. I’m renter that is renting out a spare room to help pay rent $5,000/ month (SF) vs making profit.
Rent is due the 1st of the month; with Airbnb your payouts are deposited after guests check in for that month. (Roommates would pay the rent upfront on the 1st.)

So in my case Payfully is exactly the help I needed at this time. Fees are minimal when faced with possible eviction.

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Very well said. #startups

Not everyone has the same circumstances - it’s unnecessary to call ppl stupid.

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Sorry, but lending money, to be able to afford a place is stupid.

It is a disaster waiting to happen… sooner or later you will end up in a situation where you will have no money to pay the rent, and loads of bookings lined up.

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@Nads415 I am guessing from your photo that you are under 30? 30ish? Listen to an old lady on this one. You are dependent on Air to pay your rent, correct? You don’t have a cushion and you have to borrow against future income to meet your nut? I got news for you: you cannot afford that apartment.

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I sure hope you have a Short Term Rental permit here in SF to legally STR your place, bc if not the fines are $500/day that you are in violation.

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I’ve read sentences like this so many times where people imply that they are ‘not making a profit’. It is still income that needs to be reported at tax time.

Take someone who is renting a separate apartment and the apartment costs them $10,000 annually because of their mortgage, property taxes, utilities, insurance, permits, maintenance, condo fees, landscaping etc. etc. etc. - even if their rental income is $9,999 it still has to be disclosed as income.

Having a rental at $5,000 per month with a spare room, and needing ‘help’ to pay that rent doesn’t sound economically sound to me.

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In addition to the permit that Az mentions above, I would also hope that you have permission in writing from the owner of your apartment to rent it out on Air. If you read on this forum much you know we take a hard line on those who rent out and benefit from property that does not belong to you while exposing your owner to risk and greatly magnified wear and tear on his property.

If you have to use a payday lender to get advances on your Air rentals to pay your rent you are indeed on a slippery slope.

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In order to get a permit here in SF you must have permission from the property owner if that is not you.