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Types of cash advance loans you should know

Savvy small businesses in need of cash understand the significance of speedy and convenient funding from alternative lenders.

Most SMBs don’t stand a chance with standard business loans. Traditional sources like banks not only do a credit pull, they also subject you to burdensome application procedures and long processing times.

So most applicants would rather turn to hassle-free alternatives like a cash advance loan.

Cash Advance Loans: What Are They?

These are short-term loans that can get you money in your account within 24 hours. They’re an attractive option for people who need fast cash and don’t want to get tied up in credit card debt. 

There are many types of cash advance loans, but the most common are payday advances, cash-advance checks, and lines of credit. Each type comes with restrictions on how much money you can borrow and how long you have to pay it back. It’s important to understand the terms before choosing one type over another.

Types of Cash Advance Products

Merchant Cash Advance 

A merchant cash advance is a new way to get capital for your small business. It’s different from other loans and can be an excellent solution if traditional lenders won’t approve you.

Basically, this short-term loan lets you get the money you need to grow your business fast—without having to wait days for credit checks or deal with complicated paperwork. These loans are backed by future credit card sales and allow companies to get the working capital they need quickly and easily.

The money can be used to fund inventory, payroll, and operations that have been affected by seasonal fluctuations in the business.

Credit Card Cash Advance

A credit card cash advance is just what it sounds like. It’s a way to access cash by using your credit card instead of an ATM or debit card. 

The process is simple. You go to the nearest ATM with your credit card and enter your PIN. You then choose the option for a cash advance, which you will rarely see on regular ATMs. Then, you can withdraw as much cash as you need from your account right there at the ATM.

Borrowers can take out as much as a few hundred dollars through this method.

Payday loans

A payday loan is a financial product that lets you borrow money in exchange for your paycheck. It’s a service that has been around for a long time and is growing popular among borrowers.

Payday loans are available only to borrowers with direct deposit accounts–so there won’t be any problems with refunding money if you don’t have enough in your account.

Final Words

Though cash advance loans are a fast and convenient way to acquire funding, products from bad players can threaten to ruin your financial bottom line, so you want to borrow only from reputable provides.