A payday loan represents a short term loan that will help a person to solve his/her financial issues. If you take a fast cash advance payday loan to fix your car and in a few weeks you return the money, even if the interest rate is high, then everything will be fine. But if you fail to pay your debt, there are circumstances. For example in some states you could be arrested if you don’t pay your loan, because a payday loan is a secured loan (with a post dated check written by the borrower). If you don’t pay your loan you the interest rate will continue to get higher and higher and you may be called in a civil court for damages. So be very careful when applying for a payday loan. Payday loans industry first appeared in Canada in the early 1990 and in 2004 were registered about 1200 payday loan stores. In present the industry is highly developed covering people need to borrow on a short time basis. Payday lenders practice three business models: the broker model, the traditional model and the insurance model. Lenders that practice the traditional model provide the loan from their own capital collecting all interest and charges, but supporting the operating costs. On the broker model, also the cost are supported by the lender, but a third party is involved which provides the capital. And the insurance model is practiced by financial companies.