I Just Got Access To Fiverr's Cash Advance Feature

[izah_moh]

I don't know how to feel about this one...

 

 

It seems too good to be true, which is why I'm skeptical.

Any advice from other sellers who've used this feature? Did you love using it/having access to it? Or do you regret ever using it? I'd love to know!

[donnovan86]

4 minutes ago, izah_moh said:

Any advice from other sellers who've used this feature? Did you love using it/having access to it? Or do you regret ever using it?

Do you want to get a loan and you're ok with paying interest for the money you received? Are you in dire need of money now? Then maybe it's worth it. The feature works, the only problem is that you shouldn't take a loan.. try to sort your financials and don't rely on third parties to offer you money as a loan. At least that's how I see it. 

[izah_moh]

5 minutes ago, donnovan86 said:

try to sort your financials and don't rely on third parties to offer you money as a loan.

That the main crux for me. I don't really need it right now. (I desperately did a few weeks ago.)

I have a bunch of offers paying me out today and in 3 days times, so I'm good. I just find it odd Fiverr has this feature considering the type of sellers that roam around the platform. Also just wanted to have a casual conversation about it.

Edited July 13, 2022 by izah_moh

[lloydsolutions]

57 minutes ago, donnovan86 said:

1 hour ago, izah_moh said:

 

Do you want to get a loan and you're ok with paying interest for the money you received?

No interest is charged on the cash advance. 

53 minutes ago, izah_moh said:

I just find it odd Fiverr has this feature considering the type of sellers that roam around the platform.

Fiverr Cash Advance is only available to selected sellers.

Eligibility criteria are automatically defined and are subject to change. Your eligibility can change, as it is based on your sales and performance history. 

The above is from here: Fiverr Help and Education Center (Cash Advance)

[melanielm]

1 hour ago, lloydsolutions said:

No interest is charged on the cash advance. 

Something is. Fees? I never checked it out before so I did right now. If I take a $5000 cash advance, it says I pay back $5681. That's a pretty hefty fee or whatever the correct term is here.

[donnovan86]

1 hour ago, lloydsolutions said:

No interest is charged on the cash advance. 

2 hours ago, izah_moh said:

Are you sure?

[donnovan86]

Well even if it's not interest, some sort of fee is added there, I don't think Fiverr would offer this service without any benefit on their side, and clearly you have to pay something extra. 

Anyway the service is not for me, I don't like the idea of dealing with any sort of debt.

[lloydsolutions]

1 hour ago, melanielm said:

Something is. Fees?

 

23 minutes ago, donnovan86 said:

Are you sure?

 

There is no pressure to pay the cash advance, especially since no interest is charged. You pay with your future earnings, that is, for every sale you make as a Fiverr seller, 40% of its post-tax value is used to pay Fiverr until the cash advance is paid in full. If you don’t make any sales, you don’t pay anything on the cash advance. 

 Example: 

You completed an order for $10. See the Cash Advance breakdown below:

Item	$US
Order amount	10.00
Standard Fiverr commission	-2.00
Net income	8.00
Cash Advance payment (40% of the pre-tax value on $8.00)	-3.20
Amount available for withdrawal	4.80

The above is from the article I posted which explains how this works.

[theratypist]

2 hours ago, lloydsolutions said:

There is no pressure to pay the cash advance, especially since no interest is charged. You pay with your future earnings, that is, for every sale you make as a Fiverr seller, 40% of its post-tax value is used to pay Fiverr until the cash advance is paid in full. If you don’t make any sales, you don’t pay anything on the cash advance. 

Well, that is one way to market it 😁

[lloydsolutions]

12 minutes ago, theratypist said:

Well, that is one way to market it 😁

There is no such thing as a free lunch!

[izah_moh]

2 hours ago, lloydsolutions said:

There is no pressure to pay the cash advance, especially since no interest is charged. You pay with your future earnings, that is, for every sale you make as a Fiverr seller, 40% of its post-tax value is used to pay Fiverr until the cash advance is paid in full. If you don’t make any sales, you don’t pay anything on the cash advance.

"If you don’t make any sales, you don’t pay anything on the cash advance. "

I can see someone, definitely not me, just taking the money and running. Quitting the platform altogether and saying they *technically* didn't get any more sales so they don't have to pay anything back.

Fiverr should really pick their words carefully here.

6 minutes ago, lloydsolutions said:

There is no such thing as a free lunch!

Unfortunately. That's why the economy is collapsing 🤧 😅 🤣

[bethany_scraper]

Hello,

Can you all let me know is cash advance feature is good or bad, if good then why? and if bad then why?

[anniejenkinson]

It has a hefty fee attached, so if you're fee averse, it could be bad. Many people believe it's free. It is not; while it has no 'interest' applied, the fee is heavy.

However, I consider it's good. It offers an instant cash top-up for sellers when they may need more funds in their cash flow for whatever reason. It's simple to take and simple to pay back; you don't have to do anything at all, and the repayment pace is good. If you're earning well, you'll soon pay it back. It only takes funds back from earnings.

There are not many other places where you can enhance cash flow by $5000 (in my case) within one second by just clicking a button. It does not affect your credit score so is helpful as a short-term loan when, say, you're needing a few extra thousand to make up a house deposit or another large buy, while knowing it won't have any adverse effect on future borrowings as it doesn't go on your consumer credit profile.

Most of all, it's good because it is a strong indicator of how Fiverr sees your performance. Those who are under-performing, even temporarily, will not be offered a cash advance. It gets taken away when your performance dips; if it's been taken away, your Fiverr performance has taken a dive and this may be a fast way to find out!

I like to see that Cash Advance remains available to me since this is one way to know my buyers are still happy and that no one has submitted a private review thats out of accord with what they've said to me directly or what the public review shows.

Of course, we all like to think all of our clients are open and honest with us. Due to sensitivities, one or two may not be. If the Cash Advance feature gets withdrawn from a seller's profile, the chances are it's because a buyer was not delighted with a recent purchase and the Promoted Gigs may be withdrawn too.

So, to my mind, even at times when I don't need to use the Cash Advance, I like to know it's still available to me as a measure of my performance.

[ndakena]

On 7/13/2022 at 11:43 AM, izah_moh said:

"If you don’t make any sales, you don’t pay anything on the cash advance. "

I can see someone, definitely not me, just taking the money and running. Quitting the platform altogether and saying they *technically* didn't get any more sales so they don't have to pay anything back.

Fiverr should really pick their words carefully here.

Unfortunately. That's why the economy is collapsing 🤧 😅 🤣

That person who will collect the money and run can't be eligible!!!  If you analyse, you will notice that the amount they give you is not enough for you to give up your account/profile for it.

On 7/13/2022 at 8:22 AM, donnovan86 said:

Are you sure?

There's no interest in the sense that the 20% they collect when you earn is not applied to the cash advance

[izah_moh]

On 1/23/2023 at 10:35 AM, ndakena said:

There's no interest in the sense that the 20% they collect when you earn is not applied to the cash advance

It is.

On 1/23/2023 at 10:35 AM, ndakena said:

That person who will collect the money and run can't be eligible!!!  If you analyse, you will notice that the amount they give you is not enough for you to give up your account/profile for it.

I've seen people do stuff like that irl for less. Never underestimate the length a lazy person will go to for "free" money.

But I understand the point you are trying to make. They seem to screen the people they offer this feature to.

[erinbledsoe]

I took a cash advance over a year ago, paid it off quickly, but never received the option again. Did anyone else experience this? I don't know if I'd take it again, it's just really strange that the option never returned. I've read sellers get to take out future loans days after paying off their current loan. Some say the option is gone completely. Anyone have any insight? 

I've been a seller two years and nearly made a 100k with perfect stats across the board since day one. It can't be due to my own status/level/stats. 

Edited March 14, 2023 by erinbledsoe

[smashradio]

Cash advance is just another word for loan. In other words, Fiverr is offering this to people who they think needs it and can pay it back based on criteria I imagine is similar to what banks use. 

I've been a Top Rated Seller for years. I don't share my internal business figures on a public forum with random strangers, but safe to say, my financial situation indicates I could take out a loan with low risk to the lender. 

Yet, I've never had (nor would I want) the option to get an advance from Fiverr. If you have to take out what I'd call a micro loan to stay afloat, you're doing something wrong, financially speaking. 

As a freelancer, you should have at least one year worth of expenses set aside at any given moment, before you go into freelancing. Freelancing is just like any other business: you need to be able to operate at a loss. If you can't take that, you're not ready to be a freelancer. 

So, while I have a six-figure credit line on my credit card, I never use more than I can pay back in a month to avoid interest, and I use my credit card because of the miles I get. 

I never paid as much as a dime in interest. 

In my opinion, cash advance is a predatory practice by Fiverr to "hook" freelancers who shouldn't be freelancing into staying on the platform, trying to pay back their debt. As soon as it's paid, many will get to repeat the same cycle over and over again with no end in sight. Let's realize it; most who get the offer, don't take out the loan to invest it back into their business, but to pay their bills and put food on the table, instead of slowly and surely building a buffer. 

It's just sad. And you should probably take it as a sign that Fiverr don't think you're in enough financial trouble to take out the loan. That's most likely a good thing (not that I pretend to know your situation, though). But if you're in a tight corner, go to your bank and speak to them about it. Having a good line of credit with a serious financial institution and building a positive credit history, will do you much more good than taking up a loan from Fiverr. 

[visualstudios]

If you made 100k in your first 2 years, you're doing very well, don't worry about Fiverr loans. With that said, they seem to be a good option if you really need the cash, so I see it being useful for sellers who aren't making that much - apparently it's 0% interest, which is obviously great.

I'm generally very against paying for money, which is the case with most loans, but the truth is a 0% interest loan is incredible - money now is worth more than money later, due to inflation and opportunity cost. I find it very strange that Fiverr even offers that, I'm not very sure what the reason behind it is, seeing as they charge 1% for fast withdrawals, so logic would say a lump sum loan should have a much higher interest than that.

Hell, I would take it if I could, it's a no brainer. Give me a 100k loan at 0%, I'll take it and drop it straight into any savings account with interest, or treasury bonds, or any other guaranteed capital vehicle. If you can get 5% returns risk free, that's a free 5k you're making, with no risk. Too good to be true, actually, something must be up. I suppose that's why they don't offer it to me - I wouldn't need to touch that money to live, so I would do just that, I wouldn't be under any pressure to do extra work to make more money, I have enough on the side to go over a year with no income.

Edited March 15, 2023 by visualstudios

[williambryan392]

On 3/15/2023 at 7:47 AM, visualstudios said:

apparently it's 0% interest

it's not. $1500 advance will mean you need to repay $1704. Legally speaking it's not a loan, it's an advance on your earnings.

[visualstudios]

3 hours ago, williambryan392 said:

it's not. $1500 advance will mean you need to repay $1704. Legally speaking it's not a loan, it's an advance on your earnings.

https://www.fiverr.com/support/articles/360017972518-Anticipo

They never mention any cost, even a single time, other than "0% interest". If that's indeed the case, that you end up paying over 10%, they are being very dishonest. Shameful. They know a ton of sellers here have little to no financial literacy, and are trying to take advantage, while not even being transparent in the help materials.

Edited March 16, 2023 by visualstudios

[newsmike]

2 hours ago, visualstudios said:

They know a ton of sellers here have little to no financial literacy,

Yeah, but who's fault is that?  Damned near every store I shop in asks if I want to save 5% on today's purchase by applying for their credit card...which is 22% apr.  

 

[williambryan392]

It could definitely be clearer that there’s a fee in the help centre. They allude to it with ‘the amount you’ll pay’ but I think people may think this is just the amount you borrowed, and not the fee. This post shows screenshots of the process. At least it’s super clear when actually going for it that it comes with a fee

 

Edited March 16, 2023 by williambryan392

[nickj2013]

I've used it. And had no problems. Put the money to good use, paid it back through earnings. Seems to be a copacetic system.

[visualstudios]

Lmao, a copacetic system. The thesaurus strikes again!

Anyway, wanna know what's truly copacetic? Not paying 13%+ on money.

Edited March 19, 2023 by visualstudios

[nickj2013]

4 hours ago, visualstudios said:

Lmao, a copacetic system. The thesaurus strikes again!

Anyway, wanna know what's truly copacetic? Not paying 13%+ on money.

Which is why I wouldn’t advise using it habitually.