Payday Advance vs Payday Loan: What’s the Difference in Ontario?
You’ll see “payday advance,” “cash advance,” and “payday loan” used all over the place. Are they different products? In Ontario, usually not. Here’s the plain-language version.
Key facts
- A payday advance and a payday loan are usually the same thing: a small, short-term loan repaid from your next paycheque.
- Ontario caps the cost at $14 per $100. $500 for 14 days = $70 (365% APR), $570 total.
- Lenders must be licensed, and rollovers aren’t allowed in Ontario.
- Loansville is licensed in Ontario (#4741249). No traditional credit check. Approval isn’t guaranteed.
Short answer: usually the same thing
A payday advance and a payday loan both usually mean a small, short-term loan that you repay from your next paycheque. It’s fast, it’s high-cost, and it’s meant for short-term gaps, not long-term borrowing.
The difference is mostly marketing. “Advance” sounds friendlier, but if a lender gives you money now and you pay it back (plus a fee) on payday, it’s a payday loan.
What Ontario says
Ontario regulates payday loans under the Payday Loans Act, 2008. For borrowers, that means:
- Lenders must be licensed by the province.
- The cost is capped: a maximum of $14 per $100 borrowed.
- No rollovers: a lender can’t give you a new payday loan to pay off the current one.
- Clear disclosure: your agreement has to show the total cost and the APR.
So whatever a lender calls it, if it works like a payday loan, these rules apply. Always check that the lender is licensed before you apply.
What about employer or app “advances”?
Some employers or apps let you draw part of a paycheque you’ve already earned. Those can work differently from a payday loan, so read their terms and fees carefully. If it’s a loan from a lender that you repay on payday, it’s a payday loan.
The real cost
Here’s what $500 costs at the Ontario maximum, which is what we charge:
| Borrow | Cost | Term | APR | Total to repay |
|---|---|---|---|---|
| $500 | $70 | 14 days | 365% | $570 |
That’s why payday loans are best for short, one-time gaps, and only for amounts you can repay on your due date.
How Loansville works
We’re a licensed Ontario payday lender (licence #4741249). Here’s the short version:
- Loans from $100 to $1,500. First-time borrowers can get up to $500. Returning clients can qualify for up to 50% of net pay, to a maximum of $1,500.
- $14 per $100. No hidden fees. A dishonoured payment (NSF) is $20, charged once per agreement.
- No traditional credit check. We look at your banking and income. Approval isn’t guaranteed.
- Income: at least $2,500/month from employment or a workplace/private pension. CPP or OAS on their own, EI, and ODSP don’t qualify.
- Fast: most applications get an automated decision 24/7, and funds are sent by Interac e-Transfer within 1 hour of approval.* Manual review can take longer.
- Easy repayment: by pre-authorized debit, or by e-Transfer to [email protected].
When a payday loan isn’t the right fit
Be honest with yourself. A payday loan probably isn’t the answer if:
- You need it to cover regular monthly bills
- You’d need another loan to repay this one
- You already have several loans or debts you’re struggling with
In those cases, a non-profit credit counselling agency can help you make a plan, often for free. There’s no shame in it, and it can save you a lot of money. Find one through Credit Counselling Canada, or see our guide to payday loan alternatives.
Quick answers
Is a payday advance the same as a payday loan in Ontario?
Usually, yes. If a lender gives you money that you repay from your next paycheque, it’s a payday loan, and Ontario’s payday loan rules apply.
How much can a payday lender charge in Ontario?
At most $14 per $100 borrowed. On $500 for 14 days, that’s $70, which is 365% APR and $570 total.
Can I roll over a payday loan in Ontario?
No. Ontario doesn’t allow rollovers.
How do I know if a payday lender is licensed in Ontario?
Licensed lenders show their Ontario licence number. Ours is #4741249.
Does Loansville check my credit?
We don’t do a traditional credit check. Approval isn’t guaranteed.
What is the minimum income to get a payday loan from Loansville?
At least $2,500/month from employment or a workplace/private pension. CPP or OAS on their own, EI, and ODSP don’t qualify.
Need a short-term boost?
If a payday loan fits your situation, apply in minutes at loansville.ca. Returning clients can use loansville.ca/payday-re-loan. Questions? Email us anytime, we respond 24/7: [email protected]
*Funds are sent within 1 hour of approval. Manual review can take longer, and when funds arrive depends on your bank. Approval isn’t guaranteed. Example: $500 borrowed for 14 days costs $70 ($14 per $100), which is 365% APR and $570 total. Dishonoured payment (NSF) fee: $20, once per agreement. Loansville Inc. is a licensed payday lender in Ontario, licence #4741249.
Ontario’s payday loan rules (licensing, $14 per $100 cap, no rollovers): Government of Ontario, Payday loan: your rights.