How long funds take to transfer is a complex question. There are a number of factors involved and conditions that need to be satisfied in order that funds can be transferred to your bank account. Firstly, we need to carry out our checks to validate your application and confirm affordability. Second, we need to ensure that the documentation, including the loan agreement, is in order. Lastly, we need to consider any cut-off times. Generally speaking if all the above conditions are satisfied before 5pm we usually send payment instructions to our bank/payment provider on the same day. If it is after 5pm then we will typically send payment instructions to our bank/payment provider on the next working day.
Important information: Payment instructions are only sent to our bank/payment provider once your application has been approved, the loan agreement has been signed by us and on the date(s) stated in your loan agreement, NOT from the time you make your application. We lend responsibly and therefore have a number of checks to carry out before we can approve your application. After we have instructed our bank/payment provider to send the funds payment then the rest is down to the bank/payment provider network regarding the actual time it takes for the money to reach your account. This can take up to 3 working days. As you can appreciate this is out of our control. We have confidence in our systems and processes, however if you have any doubts or questions then let us know.
Our website is available 24/7, subject to any unscheduled or scheduled system downtime. If you are a new customer you can make an application for a loan over the same time period however, we are only able to process your application during business hours. If you are a returning customer, you can login to your online account and request a new loan, 24/7. In some cases, we may be able to process and approve your application for further loan 24/7, however, as we lend responsibly we may need to carry out further checks, for example if we haven't heard from you for a while. We carry out these further checks during business hours.
When sending our bank the payment instructions to fund your loan, a number of different process kick in which are relatively unknown to the general public.
In the UK there are 3 ways of sending money between banking institutions:
Let's look at each in turn:
There have been some important milestones for FPS since its introduction. The max amount one could send over FPS was around £10,000 depending on the institution. This was increased to £100,000 in 2010 and again to £250,000 in 2012. However, may banks still maintain a £10-20,000 limit citing security concerns.
Wherever possible we send our loan payments via faster payments. Where this is not possible they will be processed by your bank as BACS. As you can appreciate this not in our control as it depends on the type of bank account you have. The vast majority of UK accounts are FPS valid for both sending and receiving so it would be rare not to receive your funds within 2 hours of payment instructions being sent, but not impossible.
Note that there may other reasons why our payment instructions are not processed immediately, for example either our bank or your bank could be experiencing scheduled or unscheduled downtime. Again, a relatively rare occurrence but not unheard of. If you are experiencing a delay it is worth checking with your bank first to see if there are any payments pending. If you still haven't received the funds after being told by us that funds were on the way, after 2 hours, do get in touch. One of the first things we will ask you is to confirm your sort code and account number. With the increasing ease of switching current accounts these days some customers do forget to update their old bank details. Indeed, it can be quite a task to remember all the places that have these details.
Another bit of banking jargon for you here. As with faster payments sending funds by chaps are pretty quick, indeed payments to UK accounts are guaranteed to arrive on the same day as instructed provided they have been set up prior to a cut-off point. Usually this is between 3pm and 5pm.If you set up the payment after the cut-off time, on a weekend or on a public holiday, it is usually sent the next working day. CHAPS has, in the past, been used for high value payments that carry a high level of importance payments. For example, when you buy a house you need a guaranteed way to move cash between all the various parties for it to complete on the completion day. Otherwise contracts could become void etc. Given the guarantee banks usually charge a quite hefty fee compared to FPS. For some banks this can be around £25. Despite the rise in popularity of FPS chaps still remains an important fund transfer mechanism and one that although not particular applicable to 247Moneybox.com loan, it is something that you should be aware of.
Sorry another acronym! BACS is the original method of transferring funds from system to system electronically. The BACS system was developed in conjunction with the Direct Debit mechanism which is the automated funds collection service set up by merchants to collect cash from consumers' bank accounts. The payments take 3 working days to clear, so money paid into your account on Monday will clear on Wednesday.
Now that you have a grasp of the main methods of electronic funds transfer, you will have a better understanding when making and receiving payments, of when the funds, including our online loans, are going to land in the destination account. This will improve your budgeting and cash management skills and mean that you should be able to avoid being caught "in limbo" waiting for a payment to clear.