The Most Important Things To Avoid When Getting A Small Loan

When you only need a little bit of extra cash to make it through the month, a small loan can often become one of your most attractive options. In this article we’ll look at some of the things you need to look out for when weighing up your loan options. Have read through these pointers and give yourself the best chance of finding the perfect solution for your needs.

Don’t take more than you need

Taking more than you need is a good way to land yourself a higher cost that can easily be avoided. At Cigno Loans, the last thing we want is for our customers to get themselves into financial difficulty. Which is why we ask to see your latest bank statements when you apply for one of our short-term payday loans.

We always advise that borrowers take only what they absolutely need to cover their emergency costs. If you take $2000 when you only really need $200 to make it to your next payday, you’re asking for trouble. Things can always go wrong and the more you borrow, the more risk you’re under of failing to pay it back on time.

Check all terms carefully before signing the agreement

When you’re in a bit of a jam in terms of time and money, many people tend to act too quickly and jump at their first options. It’s always very important to look over the terms of your loan carefully, especially when taking a small short-term loan. These loans are designed to be paid back as soon a possible, so you need to be very sure you’ll have enough money when you next get paid by your employer to settle what you owe. Unlike a long-term larger personal loan, smaller and fast payout loans are based more your current income than on your previous history with credit.

This applies to all types of small loan, whether its a payday loan from Cigno, an emergency loan from a bank or a loan from a pawnbroker, you need to be sure you know exactly what charges are going to be applied in all circumstances. At Cigno, we know how important speed is when you need funds quickly, which is exactly why we do all we can to ensure our charges and interest rate is very clearly outlined for you throughout the process.

We know that this level of convenience makes all the difference to those who need finance as quickly and smoothly as possible, and we also appreciate how much it helps to prevent problems with prepayments down the line. The better your understanding of the terms and repayment structure, the more confident you’ll be in taking the amount that suits you best.

Don’t forget how important your current income is

The more careful we all are with money, the higher our disposable incomes are likely to be. With conventional loans, how much you earn and spend are seen by many loan providers as less important than your credit score. If your credit score is not that great, you might find it hard getting a loan from banks or other typical financial institutions. With small payday loans however, you’re level of income plays a much larger role.

It’s very important that when you search for a short-term loan, you have a very clear record of your most recent income levels. As long as we can see that you are in steady employment, we’ll be able to make you an offer for a very fast loan based on your affordability. Not so happy about letting others see your most recent bank statements? Then you’ll struggle to find a short-term loan company that will accept your application.

Do yourself a huge favour and have this information to hand before you start looking, this will ensure your search goes as smoothly as possible. You’ll also need your official photo ID. Even if you don’t think your latest statements show your level of disposable income to be that impressive, the most important thing for us is to be able to assess the level of finance we can provide. This process is impossible without these documents.

You can read more about small loans 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