How To Tell If A Quick Cash Loan Offer Is Too Good To Be True

On the hunt for the perfect quick cash loan for your situation? In this article, we’re pointing out some of the most common ways you can identify a loan offer that’s too good to be true. Have a read through these pointers to make sure you don’t go with a provider that could prove troublesome to deal with. We’ll get started with:

They offer payout in minutes

This only means bad things. Either the loan company is not being completely honest about the time it takes them to process applications, or they are being completely irresponsible with how they make their lending decisions.

At Cigno Loans, we ask for your ID and access to your most recent bank statements in your application. We need this information so that we can assess your current financial situation and determine if you’re actually able to pay back the amount you’re trying to borrow. We want to make sure all borrowers can comfortably afford their loans so that they don’t run into difficulty.

Imagine a company that is giving out loans without taking these precautions and you’ll very quickly realise how destructive this can be. The only way to offer loans with payouts this quick is to bypass any sort of assessment process and throw loans out unethically. It’s not sensible, it’s hardly feasible, and you should avoid companies that make these claims no matter how good their offers seem.

They don’t offer dedicated customer services

Anyone that offers quick cash loans and doesn’t want to be contacted is not quite doing things properly. Payday loans are meant to be solutions that help people through tough times. This means you’ll more than likely need a team that’s highly prepared to provide assistance for a wide range of circumstances.

We make sure our team is prepared to help borrowers understand their terms, complete applications, and provide any other assistance necessary to ensure the process runs as smoothly as possible. None of this is possible if you don’t offer any sort of contact information.       

Scams and threats can be pretty easy to spot if you look for the right signs. Someone working alone that just wants to take what they need before ticking you off their list is the kind of setup that would fail to run a responsive customer service channel. Can’t find a way to get in touch easily? Then it’s probably best not to get involved with them at all.   

Their rates are tiny compared to everyone else’s

The best thing to do when comparing rates is to pick a company that you believe leads the market, get a good understanding of their rates and charges, then compare other options. At Cigno, we do all we can to be upfront and open about our costs. If a company is offering rates way higher than the leading average, it’s not a good deal. If they’re offering total costs that are way below the leading average, then there’s definitely something up. A lot of payday loan companies try to hide some of their fees behind various stages in their process. If an offer is really low, then it’s more than likely they’re hiding something.  

It’s important to be careful with money and how you use it, but nobody wants to be taken for a ride because they think they’ve landed the greatest deal. In the vast majority of cases, the safest thing to do is to go with the providers you think offer decent rates, are most upfront with their charges so you know where you stand, and have a good reputation for doing things the right way. Even if they aren’t necessarily the cheapest way to go, you’ll have peace of mind in knowing they won’t slam you with any surprise issues down the road.

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There you have it! These are the best things to look out for when you’re scouring the net for the best quick cash loans out there. The easiest way to fall prey to unethical loan companies is to always go for the most extreme options out there. Thorough research is vital and picking providers who’s rates and policies are roughly in line with the markets largest leading companies is one of the safest approaches you can take.     

Read more about quick cash loans here, or in our previous blog post: The Best Advantages Of Fast Cash Advances And How To Use Them

Disclaimer: Please be aware that Cigno Loans’ articles do not replace advice from an accountant or financial advisor. All information provided is intended to be used as a guide only, as it does not take into account your personal financial situation or needs. If you require assistance, it is recommended that you consult a licensed financial or tax advisor.


Ordered by the Federal Court of Australia

The Federal Court of Australia has found that Cigno Australia Pty Ltd (Cigno Australia) and BSF Solutions Pty Ltd (BSF Solutions) have breached the law by engaging in unlicensed credit activity and charging prohibited fees.

In the period from July 2022 to 3 October 2023, over 100,000 consumers have been lent a total of $34 million, and charged fees of over $70 million, under the ‘No Upfront Charge Loan Model’ operated by BSF Solutions and Cigno Australia. At no time has either BSF Solutions or Cigno Australia held an Australian Credit Licence.

The Court also found that Mark Swanepoel (director of Cigno Australia) and Brenton James Harrison (director of BSF Solutions) were involved in these breaches of the law.

With effect from 24 May 2024, the Court has granted permanent injunctions preventing Cigno Australia and BSF Solutions from:

  • demanding, receiving or accepting fees or charges, including amounts of loan principal, from consumers in relation to credit provided under the ‘No Upfront Charge Model’; and
  • engaging in further credit activity pursuant to the ‘No Upfront Charge Loan Model’, including by entering into new agreements with consumers, for so long as they do not hold an Australian Credit Licence.

Cigno Australia was ordered by the Court to, by 5th July 2024, send written communications to consumers who between July 2022 and December 2022 entered into agreements with Cigno Australia and BSF Solutions under the ‘No Upfront Charge Loan Model’.

The Court will later determine whether (among other things) Cigno Australia and Mark Swanepoel ought to pay a pecuniary penalty in respect of this conduct, and whether Mark Swanepoel should be restrained from carrying on a business engaging in credit activity.

Cigno Australia, BSF Solutions, Mr Swanepoel and Mr Harrison intend to appeal the decision of the Court and have filed an application for leave to appeal. If the appeal is successful, some or all of the orders of the Federal Court of Australia may be set aside.

Where can you get more information?

Where to go for further support

You can access legal advice in your state at: Free legal advice –

If you are experiencing trouble with debt, or money worries in general, contact:

  • the National Debt Helpline on 1800 007 007 or online chat (9:30am to 4.30pm, Monday to Friday).

If you need someone to talk to, contact:

  • Lifeline on 13 11 14 (24 hours) or their crisis support online chat or
  • Beyond Blue on 1300 22 46 36 (24 hours) or their webchat