Home FINANCE What Are Cash Advance Loans?

What Are Cash Advance Loans?

by Paresh Bramhane
What Are Cash Advance Loans

A cash advance loan is a short-term loan provided by a lender or a bank. These loans are either provided through your credit card or directly by the lender. 

The borrower can get cash in place of available credit and will pay a certain amount as interest and fee when paying back. 

The Difference Between Card Cash Advance And Payday Cash Advance?

Some lenders use the term cash advance for payday loans. These are not the same as credit card cash advances. The payday loan cash advance can have a triple-digit interest rate and they are a short-term loan that you have to pay when you get your paycheck.

On the other hand, a credit card cash advance will have a lower interest rate and the tenure of repayment will depend on your bank. The repayment is more flexible.

Why Should I Get An Immediate Cash Advance?

An immediate cash advance is best for an emergency or when you have run out of funds. These are easier to get approved and quickly transferred to you. They have minimal requirements. Your current financial situation is of more importance rather than your credit history. The lender will see if you can afford this loan or not. 

Are Cash Advances A Good Option?

Cash advances are a good option if you are planning to pay them back in a short period. These loans will not get your assets repossessed if you fail to pay them back. The only drawback is that as soon as you get a cash advance the interest starts to accumulate. 

The sooner you pay the loan the lesser amount of interest you have to pay.

However, if you are in a bad financial condition they are not for you. They can be hard to pay back since they have steep interest rates. Depending on your lender it is possible that the repayment tenure is too short so you might fail to meet deadlines. This will affect your credit history. 

I Am A Merchant. Can I Get A Cash Advance?

Yes! You can get a merchant cash advance. A merchant cash advance is paid to the lender by the business by a certain percentage of card payments at the business instead of a fixed amount.

The repayment is easy since you are paying back your cash advance with every card sale. All you need is a verified card sales terminal.

How Can I Find A Lender For A Cash Advance Loan?

When making the decision it is important to get the answers to a few questions such as what is an immediate cash advance loan? Or what are different types of cash advance loans? These questions can help you to make the right choice. 

When choosing a lender make sure to read their terms and conditions. Also, compare the available options with each other so you can get the best rates. 

Or you can visit Loanza. All you have to do is to fill an application form and then wait until you get connected to the direct lender. Loanza has streamlined the process of taking a cash advance so you can get the required amount in a matter of minutes.

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