Payfully loans - Are we safe to do that?

I am wondering if any hosts up there use payfully to get advance loans based on your bookings

Only stupid hosts would use this service… and get in big trouble.

Imagine a guests canceling…

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looks interesting if you really want the funds now and are happy to pay a fee to get them. I suspect all the people giving testimonials were encouraged to try the product for free.

Personally I want all my money for me so I will continue to do things the traditional way :slight_smile:

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I think this is a valid business idea, but it’s not for every host. I can see how some would benefit from it. I don’t think that it’s something only “stupid” hosts would use. In fact, I told my brother about this company today, as he’s got $8k in future bookings but needs some quick cash for a bathroom reno.

If you have been paid for a booking, and that booking cancels then I’m sure the revenue would just come from the next payout. It would be no different than being paid by Airbnb for a booking, and then two days later the guest discovers a bed bug and Airbnb refunds the entire amount to the guest - if Airbnb had already disbursed the money to the host, they would simply recoup their payment out of future earnings.

I’m lucky that I’m a busy host with a good cashflow and a reserve for emergencies and any other contingencies, so for me this isn’t a valuable service, but you never know how my circumstances could change.


It’s very different

  1. you don’t pay interest to BNB

  2. what happens if you have a drop in bookings and can’t afford to repay the loan

  3. the vast majority of bookings who cancel, cancel before the host is paid, so this situation doesn’t occur

It looks to me like payday advances for Airbnb hosts. The fees are “Depending on the amount of the request and how far away your advance is we charge from $15 to $45 dollars for every $500 we advance.” $15.00 is 3% of $500.00. $45.00 is 9% of $500.00. If you own your property you should be able to get a better interest rate with a second mortgage.

If you are truly confident that you can pay back the borrowed money in a few months, a credit card with an initial offer of zero percent interest would be a better way to go.


They also say that if you cancel a booking, they will take the total amount out of your account straight away.

To clarify, by your account they mean your bank account.

Sorry, but if you are in need of quick cash … you should have a good look at how you are running your business.
You are wasting 10% on interest, because you cannot properly manage your finances.

The first thing you should do when renting your place out, is save up money, instead of spending it.

Once you start going into business with a company like this, you will be stuck in a vicious circle.


I’m so happy to have lots of interesting discussion and various points of view to read, yours included. I do notice, however, that you’re a bit sharp in your replies. I’m not sure if that’s your intent, or just your writing style. Perhaps you’re just a bit more brusque than I am used to, so I’ll have to develop a tougher skin when it comes to participating in a forum with you.

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I don’t see @Chris as brusque in this case at least. His/her post lays out the facts about payday loans. Predatory lending puts people in a vicious cycle that with every new loan they have less chance to get out of. I know that many people simply don’t have enough money to make ends meet, but when there are posts suggesting that it might be a good idea to use payday loans to remodel a bathroom it is cause for concern. If anything @Chris is doing people here a huge favor in trying to help them avoid financial ruin.


10% advance fee is hardly financial ruin. It’s cheaper than the rate my bank would give me on a short term loan (12%) and cheaper than my credit card which charges 15.9%.

As I said previously, if you own the property you are renting via Airbnb you should be able to get a second mortgage which will have a much lower interest rate and the interest will be tax deductible.

If you need advances on your paycheck on a regular basis you are in trouble financially and yes on the road to financial ruin.

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Second mortgages are serious business here. Why would you take a second mortgage for what is effectively a small loan ?

As I stated, because the interest rate on a second mortgage is lower than the interest rate on an unsecured loan and mortgage interest is tax deductible. Also, I don’t think it’s wise to borrow money if you can’t qualify for a standard loan. In the U.S. you can get a small second mortgage very easily. Personally, the only reason I have gotten one was to remodel my kitchen. I think it’s only wise to borrow money for a home, your education and your vehicle.

Thanks for explaining. Second mortgages aren’t the same product here hence the lack of understanding on my part.

No, it’s not a lack of understanding on your part. A lot of blanket statements are being made.

Second mortgages can also be complicated in the U.S. and there can be numerous factors to consider whether it is worth it. Mortgage interest isn’t always deductible in all scenarios. And of course tax deductible does not mean “free.” So it definitely cannot be summed up in a few sentences. I won’t get into the details because it’s more complicated beyond my basic understanding.


I used to work in finance so it is not complicated beyond my basic understanding. Here are the rules on the mortgage interest deduction.

Taxpayers can deduct the interest paid on first and second mortgages up to $1,000,000 in mortgage debt (the limit is $500,000 if married and filing separately). Any interest paid on first or second mortgages over this amount is not tax deductible. Home equity debt interest deductibility is limited to the smaller of $100,000 or the total market value of your home minus outstanding debt. For home equity loans, please keep your loan amount below this amount or you may overstate your tax savings.

I never said that tax deductible means free. I said that combined with the lower interest rate on secured loans the ability to have your interest payments be tax deductible makes a second mortgage a much less expensive way to borrow money than a payday loan.

Now this is just my opinion.

I’m old-fashioned (read old!) and have lived in the States for 23 years. It seems to me that so many people in the USA live on credit and are happy to get loans to help them out. Sometimes, this can lead to a lot of trouble. But sometimes it doesn’t for the sensible folks. I won’t do it. To me, I don’t know what will happen in the future and am old enough to know that the unexpected can happen at any minute. I don’t want to rely on an imaginary future and I don’t have a crystal ball.

I’m old enough to have been brought up on the principle that if you can’t afford it, then save for it until you can. I have wonderful peace of mind knowing that at any given moment I might owe a little to the electricity company, for my iPhone, property tax, condo fees etc. but no car payments or mortgage OR loan repayments. (I’m lucky, I know, but I’ve worked towards that).

If loans on future and not guaranteed income suits your lifestyle then go for it. It just wouldn’t do for me. I’ve spent many years becoming debt-free and I’m so pleased that I can sleep at nights.

There’s no right and no wrong. Whatever suits your own lifestyle.


I was not implying that “you” said tax deductible was free. But I stand by my statement that a lot of blanket statements are being made about how U.S. taxes work. This is comparable to one stating that as long as you don’t provide food and change linens daily…then you don’t file Schedule C. I was just trying to be helpful to Zandra that there are so many other fine print and details in U.S. laws that one cannot just sum up everything in blanket statements.