PayDay loans may be helpful when you are having temporary cash flow problems or are facing a financial emergency and need money on a short-term basis. After filling out a PayDay loan application and providing the lender with items such as paycheck stubs and a photo ID. You sign a loan agreement, write a postdated check to the lender, and receive your money. Your check is held until your loan payment is due - usually two weeks. The lender then deposits your check - unless you have replaced the check or have already repaid the loan.