Before Pay – Money Between Paychecks

The concept of before pay is offering individuals yet another means of accessing and spending money. Between the best pay later services, credit cards, no credit check loans, and layby, there have never been so many opportunities to be flexible with your spending.

However, there are advantages and disadvantages to each means of payment that you shouldn’t overlook. Before embracing any of the up and coming financial technologies available to you, you should have a thorough understanding of how they work. Having said this, let’s investigate the growing industry of on demand pay and how it might benefit you.

Please note that specific ideas and products presented in this article may not be on offer by Monzi or the lenders we work with. This article presents only general information. Consider seeking professional financial, taxation, legal or other advice to check how the information and ideas presented on this website relate to your unique circumstances.

What is before pay?

Before pay is one of many names for the concept of accessing your paycheck before payday. You may have also heard of on-demand pay, or access your pay early Australia. Essentially, however, when you access your wage in advance, you engage with app-based lending services. These lenders allow you to borrow a portion of your salary at any point between paydays. This transaction usually comes with a small fee and allows you a four-week repayment term.

As with most other financial developments, you may be able to attain before pay from mainstream financial institutions. However, several independent non bank lenders initially offered this service and continue to do so.

Why would you use before pay?

There are several reasons why you may want to use a before pay service, some more necessary than others. You can technically use an on-demand pay service for your midweek online shop if you desperately feel the need to fund a haul. However, better motivations for accessing your pay early can be covering surprise bills such as an unexpected hospital trip or plumbing fee.

Whilst you are technically borrowing from your own money, you are also using a company’s money – even if it is interest-free. Becoming too reliant on before pay for menial shopping trips can be dangerous in some situations. Although it is pretty challenging to put yourself in danger with this payment method, attached fees can cause some strife.

How do you use before pay?

So, before pay sounds appealing in theory. But how exactly do you use it? If you aren’t operating via a bank’s services, you will most likely want to start downloading your preferred provider’s app. Once you’ve done so, you are going to need to create an account. This may or may not involve a credit check. Most providers won’t worry about the state of your credit, however.

Establishing your account will require you to show bank statements for the past couple of months to prove that you qualify for the service. Once you have set your account, you will need to connect it to the bank account that your paychecks deposit into. This then allows for your repayments to take place automatically on payday. From there, when you request a portion of your paycheck, you may have the money you need in as little as a minute.

How much can you get access to?

Depending on the provider you use for your before pay, how much you can access will vary. There is often a minimum and a maximum amount for one withdrawal. However, it will also depend on the size of your paychecks. The more you earn, the more you may be able to borrow.

For example, your minimum might be $100, and your maximum could be $1,000. However, some providers operate on the basis of how much you have earned in the current pay period. Say that you get paid fortnightly and have only worked the first week out of the fortnight. This may mean that you are only entitled to as much as you have currently earned in the first week. You should be aware that your total paycheck may not always be enough to cover your circumstances. This means that you may need alternatives, such as the Monzi lender-finder.

Things to consider before creating an account

Just as you should note that before pay might not be enough to cover your expense, there are several other considerations worth noting. Some of the available apps may also provide you with the opportunity to track your spending and manage your budgeting. Before pay and additional pay on-demand services will charge transaction fees and potential account maintenance fees. So, whilst the lack of interest is a bonus, you need to keep in mind that there are ways to stack up extra charges if you aren’t careful.

Also, note that before pay and accessing your income early is not a long term financial solution. It is not the best idea to become dependent on these types of services. There are also concise repayment terms. You can automate before pay apps; if your provider doesn’t automatically subtract what you owe, you will have to be prompt.

Before pay vs accessing your income early

Accessing your pay early and before pay are names for the same concept of borrowing from your future paycheck. Before pay is a specific company; however, the idea of paying for your expenses before your paycheck arrives is thriving. Regardless, these terms are interchangeable.

Before pay alternatives

There are several before pay alternatives for when you need extra money betweeen paychecks. The most common of which include:

Depending on your situation, some of these may be better than others. If you need more than what a before pay service will give you access to, a personal loan may help. Payday loans, on the other hand, can be pretty similar to a pay on-demand service. However, the interest is relatively high, so you will want to ensure that you can manage it.

Government benefits and interest-free loans are also available if you meet the eligibility. Often, if you are already receiving government benefits before pay providers won’t be willing to work with you. Meaning you may have to turn to the government a second time if you need extra cash.

Are early paycheck providers safe?

The most common question when it comes to your finances and technology is: is it safe?

Generally, providing you are interacting with a legitimate business and not a scam, these services are safe. Monzi cannot speak on behalf of all before pay providers. We can, however, tell you about the technology that safeguards the Monzi lender-finder. Monzi protects its system with two of the security industry’s giants, McAfee and Comodo. Meaning your information is constantly safe and encrypted. Monzi employs the latest security and banking technology to give you peace of mind when searching for a lender.

If you have any more questions about Monzi and our lender-finder, don’t hesitate to get in contact with our friendly team.

What additional fees come with these types of apps?

One of the advantages of before pay apps is they are usually a pretty low cost. You generally won’t encounter any interest or ongoing fees. You may, however, have to pay a small flat rate percentage when you borrow against your upcoming wages. This means that you get near-instant access to your money, and doing so will be far cheaper than using a payday loan.

However, whilst this percentage is small, the extra costs can stack up if you make multiple withdrawals from your upcoming paycheck. To avoid this, consider repaying what you owe as early as possible as there is no charge preventing you from doing so.

Pros and cons of accessing your pay early

Every financial decision has its pros and cons. When it comes to before pay, the situation is no different. Refreshingly, however, accessing your income early has several more advantages than disadvantages.


  • You may not require a credit check when creating your before pay account. This can be useful if you have made some past mistakes.
  • Whilst there is a transaction fee, the total costs for these services are generally relatively low.
  • You may also gain access to various budgeting tools to encourage you to make smarter decisions.
  • You may get access to your money in as little as a minute if you have the available funds.


  • You might not be able to borrow a large amount of money like you could with a personal loan.
  • If you aren’t on top of your repayments, the short repayment terms could cause you to struggle.
  • If you are under a certain income threshold, you will be unable to use these services.

Note that these considerations may not apply to all providers. If you have any questions on the operation of these services, it may be best to reach out to the provider’s customer service team directly.

Using before pay

Is there a version of before pay for businesses?

It is unlikely that you will be able to qualify for before pay for businesses. Unless you intend to pay for business needs out of pocket, you may not be eligible. Generally, before pay companies won’t work with the self-employed. If you do require such a service, however, and you don’t like business loans Australia, you may have the option of invoicing solutions. There are similar services to before pay that can help business owners.

This can work well if you are struggling to get approved for loans through traditional banks. Alternatively, Monzi may be able to match you to a lender who can listen to your situation and potentially take a chance on you and your small business when you require extra funding. When it comes to helping people with cash loans, the lenders in the Monzi network won’t discriminate based on situation or credit. Everyone receives a fair evaluation.

Application eligibility

There are generally three criteria you will need to meet when it comes to before pay eligibility. These are:

  1. You have a minimum income of $300 a week after tax and aren’t self-employed.
  2. Government benefits, such as Centrelink, don’t equate to more than 50% of your income.
  3. Your paychecks must be deposited on a regular schedule to the bank account that you link your account to.

You will most likely also have to be over the age of 18. However, it is increasingly apparent that before pay companies are not super-inclusive with general eligibility terms.

What can you do if you receive government benefits?

If you are receiving government benefits of some description, you may struggle to access your paycheck early. However, there are alternative options in the form of a Centrelink cash advance or a government-granted no-interest loan.

A cash advance from Centrelink isn’t available for all payments, however. Some payments will be entitled to a cash advance immediately, others after three months, and some not at all. Essentially, however, a cash advance is the same concept as accessing your pay early. However, you are doing so with your Centrelink payments.

If you aren’t eligible for a cash advance, Monzi may be able to help. Loans for people on Centrelink are available when you need a lender to take a chance on you. You will still need to prove that you have the required borrowing power before this can progress. However, it means there is hope available for you when money is tight.

Before pay vs personal loans

The concept of before pay seems like a pretty good deal. With no interest and minimal fees, why might you want to turn to a personal loan? Well, a personal loan may entitle you to a more significant sum than you might receive by accessing your pay early. Not only this, but you will also have a longer-term, meaning that providing you make your repayments promptly, your loan has the potential to be smooth sailing.

You might need a long term and more money than a before pay service can offer you, yet you have bad credit. If so, personal loans may be your best alternate option. This is because most personal loan lenders are non-bank lenders with flexible criteria. Meaning if you need bad credit loans, want to skip the credit check, or struggle with traditional loan approval, a private lender may be willing to take a chance on you. However, if you know that you may struggle with your repayments if you borrow beyond the bounds of your paycheck, before pay may be a better choice. While both options can skip the credit check, personal loans will have an accompanying interest. Therefore, there is more room to positively or negatively influence your credit score if you aren’t careful.

Regardless, however, each option has its benefits, and it will depend on your situation as to which you may be better suited.

Why not take a payday loan?

Payday loans are the loan type with one of the smallest terms on the market. This sounds good in theory but can become problematic when you pair this with high interest rates. If you are in a situation where you need money before payday, why not go for online payday loans? After all, the use is in the name. Well, you may want to deeply consider this option before selecting it.

This is as payday loans create more room for you to default on your loan and potentially enter debt cycles. They have short turnaround times, with tiny repayment terms and high interest. This means, for the inexperienced borrower, if you aren’t well and truly on top of this loan, you could be getting yourself in trouble. It is less common now to find a lender offering payday loans due to the risk they pose. However, they are still attainable. If you would like something similar to a payday loan with less risk, why not look into personal loans? Monzi is happy to help you out.

Does credit score matter?

The state of your credit score typically does not matter when accessing your paycheck early. This is because no matter how terrible your money management might be, before pay apps are connected to your bank account. Meaning that as long as you are getting paid, the provider won’t be concerned about whether or not you can repay the loan.

However, you must show that you have been earning a regular income that meets the provider’s requirements for a certain amount of months. This is so that you won’t risk getting yourself into debt when utilising these services. Monzi has similar requirements when it comes to applying with our lender-finder. When submitting your application, you will need to show that you have had a regular and adequate income for the past three months.

Monzi lenders and credit score

Monzi lenders may be able to offer you bad credit loans. This is because the lenders in the Monzi network are private lenders that operate on criteria that are often less strict than a bank’s criteria. Whilst each lender operates differently, it is safe to say that Monzi lenders will look beyond just creditworthiness. They may also evaluate your job, income and expenses, and any debt you have. This is so they can get an adequate understanding of your complete circumstances and better identify your borrowing capacity.

In some instances, a credit check may not be a requirement. This is as not every lender’s structure needs one. However, if you use the lender-finder and match with a lender who does require a credit check, it won’t be the end of the world. They will still evaluate all the above information about you when making their decision. You may, however, be entirely against the idea, yet the lender you match with requires it. If so, you can apply to be rematched. However, Monzi cannot guarantee you will get a different lender the second time.

Can you change your before pay limit?

No. Unlike a credit card, you most likely won’t be able to request to have your before pay limit increased. This is because, unless you have had a pay rise, your income might not cater to a higher limit. If you find yourself in this situation and need an alternate option, you could utilise your credit card for the expense. Or, you could search for a lender through the Monzi lender-finder. Small loans from a Monzi lender may help you access the money you need to get the job done. If you would like to know more about this, don’t hesitate to contact the team.

Why is income more important than credit score?

In the case of accessing your pay early, the quality and reliability of your income are more important than your credit score. This is because you need to work a consistent, fulfilling role for a before pay provider to trust you with their money. Considering this loan happens in and around your bank account, you don’t want to run the potential risk of overdraft or live week by week due to overuse of before pay. If you are currently struggling with money management and paying the bills, the government’s MoneySmart site is an excellent place to start your research. They have a great page on managing debt, in particular, if you find yourself struggling.

Before pay vs buy now pay later

Buy now pay later (BNPLs) has blown up in popularity in recent years. It has also paved the way for financial technology such as before pay. But is one better than the other? The answer to this question depends on what you are trying to do. If you are getting some shopping done and have stacked up the dollars on an extensive shop, BNPLs can be your friend. This is because they allow you to split the total cost into four payments that you repay over four weeks. Doing so may help to fit these costs into your weekly budget, as you are only paying the total off in portions. And, you can have your items sent to you straight away.

Alternatively, if you have a cost that needs to be paid off in full, now. And you don’t want to break the bank doing so; before pay may be more helpful. Not to mention that BNPLs usually come with more additional costs and the potential for incurring interest. Before pay services can, cost-effectively, allow you to cover and repay what you owe.


One other, more traditional, method of paying for your goods when you don’t have the complete funds is using a layby. A layby is not so common these days as it can only take place in-store, not online. Essentially, a layby is where the store will put aside your goods and break your payments up as BNPLs do. Where they differ, is that with layby, you cannot take your goods until you have paid the necessary amount. Rather than incurring interest, if you fail to pay, the goods will go back on the shelves. The store will return your payments to you. This method is excellent in the months that lead up to Christmas, and it won’t require a credit or income check.

Does Monzi offer before pay?

Monzi does not offer any form of before pay. It is possible, however, for Monzi to help you between paychecks. We may help by matching you with a lender able to fund your same day loans.

It couldn’t be simpler. Monzi is 100% online and paperwork free. When you are ready to start your application all you’ll need is an internet connection. All you’ll have to do is click ‘apply now’ or scroll up to our loan slider if you are ready to begin. We don’t need a whole lot of information, and once you tell us what we need to know, we’ll do the rest. If you apply during business hours, we may be able to find you a lender in as little as 60 minutes.

If you still have some questions before applying don’t hesitate to contact the Monzi team. You can reach our friendly staff members at We’re happy to try our best to promptly answer your queries.

Check us out

If you like our service or just want to see more, you can find Monzi on Facebook, Instagram, Twitter and Pinterest. That way you can read more articles and hear updates from us. Or, if you aren’t the biggest fan of sending emails, you can DM us your questions instead. We look forward to seeing you there!

If, however, you would like to learn more, why not check out our article on cryptocurrency investing?

Factor In


Two credit cards
Two credit cards

You won't use a penny to apply for our lender-finding service, but here's some costs you could expect from a lender

Loan amount

$300 - $2,000


12 months (minimum)

12 months (maximum)


20% upfront establishment fee

+ 4% monthly fee


Representative example based on a loan of $1000 over 6 months a borrower can expect to pay a total of $1440.

Disclaimer: Under the current legislation, all Small Amount Credit Contract loan providers don’t charge an annual interest rate. The maximum you will be charged is a flat 20% Establishment Fee and a flat 4% Monthly Fee. The comparison rate on loans between $300 and $2000 could be up to 199.43%. The minimum loan term is 16 days and maximum loan term is 12 months. Representative example based on a loan of $1000 over 6 months a borrower can expect to pay a total of $1440. WARNING: This comparison rate is valid only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan.

Loan amount

$2,100 - $4,600


13 months (minimum)

24 months (maximum)


47.8% Annual Percentage Rate (APR)

65.85% Comparison Rate p.a.


Representative example based on a loan of $2500 over 24 months a borrower can expect to pay a total of $4,556.88.

The maximum interest rate for a Medium Amount Credit Contract is 47.8%. Comparison Rate 65.85% p.a. The maximum loan term is 24 months. Representative example based on a loan of $2500 over 24 months a borrower can expect to pay a total of $4,556.88. WARNING: This comparison rate is valid only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Credit criteria and terms and conditions apply.

Loan amount

$5,000 - $15,000


13 months (minimum)

24 months (maximum)


17% Annual Percentage Rate (APR)

36% Comparison Rate p.a.


Representative example based on a loan of $10,000 over 36 months a borrower can expect to pay a total of $16,489.

The starting interest rate for a Personal Loan is 17%. Comparison Rate 36% p.a. The maximum loan term is 24 months. Representative example based on a loan of $10,000 over 36 months a borrower can expect to pay a total of $16,489. WARNING: This comparison rate is valid only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Credit criteria and terms and conditions apply.