Payfully Issues

[Julie131]

Just a head's up.  I don't know if you have gotten notice of this service or not.  But I feel I need to warn you.  

I applied for an advance with this company and they refused it on false pretenses.

a. They said I hadn't been an AirBNB host for more than three months. I've been hosting for over a year almost continuously.

b. They said I didn't sign the paperwork. I did sign the paperwork and have the emails proving I did.

c. They said my bank account was not the one used with AirBNB. It is. It's the only bank account I have.

d. They said my policies are "STRICT" and they are not.

Plus they do not provide a phone for you to reach out to them. Then when I tried to log on, it demanded I link my AirBNB account again, and then said it couldn't because it was linked to another account. I just cancelled and took away their access to my bank account. Just be aware. This is not what it seems.

[Zandra0]

???? What ????

[Kristen38]

Has anyone else had other issues? I'm wondering if your issues were just due to technical difficulties because the company was just getting started? I've been reading the fine print "Terms and Conditions" of this company and it's pretty lengthy document they make you sign (which I haven't yet). My concern is that they have the "payfully fee" that they show you upfront next to all your upcoing bookings ($15-45 per $500 they advance you) but then there is a section called "Service Fees" that they do not mention except in the fine print...which does not state "how much" the service fee is...only that they take it on the day they collect from your bank account. 

Also, there is a section called "Reimbursement Expenses" where they say "Seller" (you/me) shall pay all costs and expenses incurred by "Purchaser" (them) .... all filing fees, filing taxes or search fees, wire transfer fees, ACH fees UCC filing and search fees... Anyway, I'm not quite sure what all that means but, would really like to speak to someone on the phone instead of reading confusing jargon in a multi-page contract that looks scary and binding saying they can take money out of your bank account basically whenever they want...by these terms you sign. 

[Christine455]

Kristen, thank you so much for your post!   I had applied after Airbnb sent me the advertisement, but apparently they didn't approve me because I just started hosting, didn't know about the 3 months requirement.

I truly appreciate your posting the fees and contract terms:

"... Also, there is a section called "Reimbursement Expenses" where they say "Seller" (you/me) shall pay all costs and expenses incurred by "Purchaser" (them) .... all filing fees, filing taxes or search fees, wire transfer fees, ACH fees UCC filing and search fees..."

Can ANYONE tell me WHY they would sign this?  That is INSANE!

[Kristen38]

Hey Christine, 

I had the same alarming question. I talked to them on the phone and asked them about that. They assured me they would not take any extra money other than the initial fee. Now, whether they try and pull something in the future when it's time to pay their taxes, (which I also asked about) who knows...

Coincidentally, I have been looking at this new company that's been coming across my social media, called "Clearbanc". I talked to them on the phone today and read all the FAQ (I havent yet, read up on reviews yet). This company sounds much more like something I'd be willing to try, and I probably will in the near future. The way it works vs Payfully:

They offer you a "loan" based on your Airbnb/Homeaway longevity, status and future bookings. Then they base their fee off that...So I asked them on the phone "How much is the fee for $5000 loan?" And they replied, depedning on your Airbnb status (which they check into after you link them to your account). So for $5K he said it would be anywhere from 15-20% fee added into the loan payback amount. 

How Clearbanc works: 

You ask for a loan. They approve an amount. You get the money in 2-5 days. THEN, as you get your airbnb payouts, they take a cut, depending on the size of the loan, but they will never take more than 50% of your airbnb payout. Which I think is fantastic as Payfull takes the whole thing and you are left feeling broke and cant pay your mortgage or whatever... So, for this reason I would never use Payfully again and am definitely looking to use this company after I get back into town from a trip. 

Hope this helps, but make sure you do your own research as I havent used them yet. 

Kristen 

[Christine455]

Thanks so much for the info, Kristen!

"... So for $5K he said it would be anywhere from 15-20% fee added into the loan payback amount. ..."

Do you realize that this is a VERY high interest rate?   Since it's likely a "business" loan, probably won't get any disclosures on APR etc., but I consider just a plain 20% interest rate very high.  But if you pay it back in half a year, you're looking at ABOUT 40% APR, if it's only 3 months, 80% APR, etc.    The real APR is actually HIGHER, since you start paying back with your next booking, maybe the day or week after you got the loan.

You could easily end up paying OVER 100% interest!  All depends on your bookings.

[Kristen38]

That's a good point, but it's not like interest where it accrues over time. It's a flat fee that you pay back with the initial loan as you get your bookings. 

[Kristen38]

So, the bottom line is, you probably pay more to Clearbanc in higher fees but, you don't have to give up your entire airbnb payout everytime it comes in (like with Payfully). In addition, and I forgot to mention this earlier, Payfully only gives you money based on your future bookings...so lets say your next 3 bookings only = $950 then that's the max you can get "loaned" from Payfully. Where as Clearbanc, you can ask for like a $5000 loan, regardless of what your next bookings equal to. (Based on your Airbnb longevity, ratings and futurebookings of course...but the potential to take out more exists). 

[Imperial3]

 Clearbanc made me and offer and more specifically let’s say they loan you 5k. you pay the 5k back plus a fee. The fee may be $650. They take there money back at the rate of 20% per booking until the 5k + $650 is paid in full. It seems pretty straight forward to me and if you need the cash a decent and clean cut cash advance. 

[Vince-and-Jeff0]

Don't count on PAYT FULLY if you need emergency funds within a week like I did. GET THE MONEY SOMEWHERE ELSE! I am a well established AirBNB Superhost and as ALWAYS, I have MULTIPULL up coming reservations totaling over $2000 over the next 3 weeks. First my water heater starts leaking and 2 days later my whole house air stopped working. Normally this would not be a problem but I had just purchased 2 new Cars, had over 13 Yards of MULCH laid, and then my aunt borrowed money twice in the past week. THEN THE AIR CONDINOER AND WATER HEATER BREAKS DOWN – Murphey's law I guess. I figured I would try PAY FULLY instead of borrowing money for the repairs – BIG MISTAKE. I had set up an account and for a few days I kept getting REVIEWING CASE and I would hear from them in 48 Hours, SO I waited, and I waited, and I waited and three dayts later I started to Chat up JON, he got that fixed. Suddenly I had an offer for $1500 available so I applied for $900 from 2 reservations. once again I was getting CASE BEING REVIEWED. So I chatted with JON again and he assured me the REVIEWwould drop off by 4PM EST and I would have the funds the next day (Wed). So I waited and at 6PM I was still getting CASE BEING reviewed on my LOAN OFFERS. So I chat up Jon Again and he said I missed the 3PM Deadline and it would drop off at 3Pm the next day and I would have my funds on Thur at the latest. So on Thurs I get a call from PAY FULLY asking me to send them MY ID ??? You have my BANK ACCOUNT INFOMATION AND YOU WANT A COPY OF MY ID? FOR REAL? 2 Broken PROMISES and I am suppose to trust you with my bank account information and a photo ID. Why don't you just ask me to sign a blank check and send it to you? I am so sorry I ever heard of this STARTUP. I am out of time and just made other arrangements to pay for the repairs that would have been done DAYS ago after PROMISES from PAY FULLY. I had a guest stay last night and had to do a PARTAIL REFUND because there was no AIRCONDITIONING. I had an entire week to get my problem fixed and let PAY FULLY STRING ME ALONG to the point that I had no time left. I WAS LIED TO NOT ONCE BUT TWICE – broken promises and no money for needed emergency repairs.

[Nii0]

I can understand the frustation specially when there is a urgent need (otherwise we would not even use their service right). But I think there was possibly a miscommunication somewhere. I went through the same process (maybe shorter because I provided what they asked for). They do need to verify your ID the same way any other institution will do. Let's say you go for a loan, you will be ask to provide your ID and your bank account. Why should it be different with them? I am confident that you would have been approved and got the money the very next day you would have complied with the demand. Let's be hnest: $900 is not a dollar and when we know how easily one can change the payout account causing them probably some delay to recover the money they loaned, it is understandable that they ask for as least the basic which is an ID. And that is also for your own safety. Anybody could claim that money under your name. I went through the same process (I guess everybody does) and all went smoothly. I completed the whole process in 48hrs and had the money transferred the day after. Sorry it did not work that smooth for you.

[Rick73]

Hi All,

I never post on discussion forums as I'm busy. But I read Julie's comments below and while I'm sure they are all valid from her prespective my experience with Payfully was just the opposite. Note, I have been hosting on Airbnb for two years and have hosted over 200 trips and 500 individul guests. And have used Payfully several times for advances on future Airbnb reservations and my experience with the company has been great! When I first signed up several months ago there were a couple of technical glitches but these were fixed quickly and I recieved help from both the CEO and Luis (both partners in the company). I was also able to speak to them on teh phobne several times. I also think it's a great concept and that any hosts that find themselves with s short term cash flow needs should give them a try – it's a great service! Also, keep in mind this is a start up in a complex tech enviornment - but all in all I give them five stars for both concept and customer service. In regards to their fee, if you do the math it's pretty low given that other short term lenders charges fees much higher than this.

Rick

[Jewels0]

Rick ~ I know peeps in P'town and JT ~ so now that I've checked out your AirBnB profile, I decided to try to 'trust you'... my issue with Payfully is that they are listed on Google Reviews as a scam by AirBnB - I am about to phone them.  But I want to know how often you have used Payfully - and if this is recently?  I can't understand why their main site is so sparce, with no phone number to contact, and it just doesn't seem like there's enough good ratings out there.  I can find on the web they raised 400k in Seed Funds in the past year... but their Google Reviews seem bogus.... But then I found this page!  Thank you for your further insights - much appreciated! 

[Rick73]

Hi Jewels,

I've used them three times for about $6500 in advances. The last time I used them was late February. My experience was very positive and I will use them again without hesistation. The guy I spoke to there (Luis I think) told me that Airbnb is not fan of the company as they (Payfully) was originally called Airbnbadvances (or something like that) and I guess there was a legal scuffel over the name with Airbnb... but I'm not really sure of the details...  that's about all I know 🙂

Rick

[Daniela-and-Jérémie0]

Hello everyone, 

I am Daniela **, co-founder at Payfully. 

Rick and Lucia, I am glad to know that you are happy with our service! Thanks for your support 🙂

Jewels, we do our best to accept the requests of every Airbnb host that need a payment in advance but as every financial service, we must reject the applications of the users that do not meet all the requirements. As you can understand, some people get upset because when we don’t approve their requests and sometimes, they left a bad review.

If you chat with us through our website and leave your email address or phone number, I will personally contact you and help you with all of your questions regarding Payfully.

Thanks,

Daniela