Lenders That Provide Cash Advance Loans
Cash advance lenders provide business firma and consumers with the opportunity to borrow money in case of temporary cash shortage. Therefore these lenders usually tend to help only those people who suffer from cash flow problems at a particular time and prove to be very useful for them. However these loans are not a permanent solution to financial difficulties. There are times when small business firms face difficulties while meeting their working capital. In order to ensure that the working capital requirements are met, these firms can avail cash advance loans.
Cash advance loans prove to be very beneficial for small businesses that find it hard to get loans because of bad credit or inadequate operating history. This is because in this type of loan, the firm is not required to give any collateral in order to get these loans. Hence, it doesn't really matter if the company has had poor credit rating as cash advance loans do not require a credit check at all. When it comes to finding merchant for cash advance, what matters the most for a firm is their credit card receivables as this can give the lenders a good idea of what the borrower's monthly income is.
The application process for these loans tends to be very simple. The borrower needs to fill out and hand in a simple application form. Along with the form, they must provide copies of voided checks and merchant account statements of at least 4 months. Usually after 6 hours of applying, the applicant is informed about the status of his application. The repayment procedure in this case also tends to be very simple. The interest and the principle payment are basically calculated as a percentage of the gross sales made by that company. Usually, about 10 percent of the gross sales are used to pay the monthly installments. The repayment is made over a period of about 6 to 9 months.
There are many advantages of merchant cash advances. The first one being that the firm does not need to pledge any collateral in this type of loan, which permits the company to avoid losing their assets in case they default. Business cash advances tend to be very different from the traditional bank loans as they have to be repaid under any circumstances. In case of a secured personal loan, the firm is always at a risk of losing their assets if they fail to repay the borrowed money. Therefore a small firm can benefit from merchant cash advance loans as they are unsecured personal loans. However, at the same time, these loans don't have a high interest rate.
Payday cash advance lenders on the other hand allow people to avail loans which they would have to return when they get their next paychecks. They provide people with a chance to get money without any collateral. Moreover, in payday cash advance, the credit score of the borrower is also irrelevant to the lender. The lenders usually deposit the borrowed sum into the borrowers account electronically and later withdraw the principle and the interest on the next payday.
The borrowers in their case are expected to give electronic access of their bank accounts to the lenders so that they can receive and repay their loans electronically. The lenders in this case are thus known as direct cash advance lenders. Both types of cash advanced however are helpful for different entities and one can opt for one keeping their capabilities in mind.
Cash advance loans prove to be very beneficial for small businesses that find it hard to get loans because of bad credit or inadequate operating history. This is because in this type of loan, the firm is not required to give any collateral in order to get these loans. Hence, it doesn't really matter if the company has had poor credit rating as cash advance loans do not require a credit check at all. When it comes to finding merchant for cash advance, what matters the most for a firm is their credit card receivables as this can give the lenders a good idea of what the borrower's monthly income is.
The application process for these loans tends to be very simple. The borrower needs to fill out and hand in a simple application form. Along with the form, they must provide copies of voided checks and merchant account statements of at least 4 months. Usually after 6 hours of applying, the applicant is informed about the status of his application. The repayment procedure in this case also tends to be very simple. The interest and the principle payment are basically calculated as a percentage of the gross sales made by that company. Usually, about 10 percent of the gross sales are used to pay the monthly installments. The repayment is made over a period of about 6 to 9 months.
There are many advantages of merchant cash advances. The first one being that the firm does not need to pledge any collateral in this type of loan, which permits the company to avoid losing their assets in case they default. Business cash advances tend to be very different from the traditional bank loans as they have to be repaid under any circumstances. In case of a secured personal loan, the firm is always at a risk of losing their assets if they fail to repay the borrowed money. Therefore a small firm can benefit from merchant cash advance loans as they are unsecured personal loans. However, at the same time, these loans don't have a high interest rate.
Payday cash advance lenders on the other hand allow people to avail loans which they would have to return when they get their next paychecks. They provide people with a chance to get money without any collateral. Moreover, in payday cash advance, the credit score of the borrower is also irrelevant to the lender. The lenders usually deposit the borrowed sum into the borrowers account electronically and later withdraw the principle and the interest on the next payday.
The borrowers in their case are expected to give electronic access of their bank accounts to the lenders so that they can receive and repay their loans electronically. The lenders in this case are thus known as direct cash advance lenders. Both types of cash advanced however are helpful for different entities and one can opt for one keeping their capabilities in mind.
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