Do you need emergency funds but are strapped for cash? The best way to get out of this financial emergencies is by applying for advance loans. Read on as FamilyMoney explains…
It is a short-term loan that can get you out of an immediate crisis and offer you financial protection.
Cash advance loans are of different types, and you can choose one depending on your financial situation. The real problem is choosing the right company that can offer you advance loans.
With so many companies working towards providing financial assistance to people, the choice can become challenging. There is also the disadvantage of running into scammers who might make money out of your misery.
If you are looking to apply for direct lender payday loans and need assistance, you have come to the right place. The article guides you through the process of advance loans and how it works. It also mentions some of the best companies that you can approach for loans.
What Are Cash Advance Loans?
Before we move on to more in-depth information about these loans, let us understand the term in detail.
A cash advance loan is the fastest way to get cash for emergencies. This is a short-term prospect that you can get from a bank or another lender. It is crucial to know that a cash advance loan is quite expensive.
The interest rates are high since you will be applying for quick funds. However, these loans get fast approval, so people in dire situations find it an attractive and easy way out.
Types of Cash Advance Loans
You will come across three types of cash advances between which you can choose. These three loan types are – credit card cash advances, merchant cash advances, and payday loans.
Let us shed light on each of these cash advance types for you.
Credit Card Cash Advance
Merchant Cash Advance
The easiest way to get a cash advance is by using your credit card. The advance you can take on your credit card would ideally be 20% to 30% of your credit card limit. However, some cards offer up to 50% withdrawal.
This advance does not require additional verification since you are using your account. Customers also do not have to wait for the approval of the bank.
A merchant cash advance is a perfect way for small businesses to get a short-term cash loan. The lender checks the past sales of the business along with their future sales projection.
If your business’s daily debit and credit sale situation is good, the lender will provide you with the loan.
It is also called an employer cash advance since you receive a loan from your employer. The two other types of loans involved payback; however, payday loans do not.
You will get an advance from your income; hence the employer will directly deduct the amount from your next payday.
How Do Cash Advances Work?
The process for the cash advance is different for each type. Moreover, there is a difference in who will be eligible for each type of loan. Below are the processes for each type of cash advance loan.
Credit Card Advances
You can get this advance by simply using your credit card in an ATM. Depending on what amount you withdraw, the lender will send you an access check periodically with your credit card statement every month.
This is a fast cash advance that you receive instantly without any waiting time. You will be withdrawing an online cash advance from your bank account.
Merchant advances are typically funded in collaboration with the payment processor in charge of your debit and credit sales.
There is no APR (annual percentage rate) charge on merchant advances since the repayment depends on your daily sales.
It means if your daily sales are high, the repayment amount will also increase and vice versa.
A payday loan is an instant cash advance that you will get from your employer. You may have to fill in a form or provide your last payment details to avail of the same-day cash advance. Nowadays, most payday loan products come in the form of installment loans so you can pay back over a few months rather than 1 month. Still, this form of borrowing is the most expensive and should only be used in dire need and never as a long term financial solution.
There is no cash advance fee or hidden fees for a payday loan.
Best Cash Advance Loans Online
If you want to apply for an instant cash advance online, you will find several providers. These providers will take care of your financial needs within the same or next business day. They will deposit the money in your bank account, and you can withdraw the money whenever you want.
To help you out, we have provided information about the top 5 cash advance providers that you can reach out to.
You can check the website of each of these providers and get more information about their loan terms. Verify their contact information and other details before you get into a loan agreement with any provider.
|Loan Provider||Maximum Loan Amount||Interest Rate||Loan Term|
|CashUSA.com||$500 to $10,000||5.99% to 35.99%||3 to 72 months|
|BillsHappen||$500 to $5,000||Variable||Variable|
|CreditLoan.com||$250 to $5,000||Variable||Variable|
|BadCreditLoans.com||$500-$10,000||5.99% to 35.99%||3 to 60 months|
These services providers are not just for a cash advance but can also provide you with a personal loan and other necessary loan products.
Cash advances provide you with the quickest relief from your financial needs. They are provided to you on the same or next business day.
These loans have a limit, and the amount generally does not exceed $10,000. However, this is good for people who need it for immediate payments.
With the right loan provider, you will not have to worry about financial worries. However, it is necessary to pay back the money on time not to damage your credit score. Moreover, non-payment of these loans will lead to late fees and high finance charges.
These short-term personal loans will help you get back on your feet. However, it is essential to remember that this is not a long-term financial solution. Therefore, opting for such short-term loans frequently will affect your available credit and incur extensive finance charges.
Hence, before you move forward with any of these loan products, it is crucial that you fully understand the situation you will be getting into.