Cash advance loans, often referred to as payday loans or quick cash loans, are short-term financial tools designed to provide individuals with immediate access to funds during emergencies or when facing unexpected expenses.
These loans are typically unsecured, meaning they do not require collateral, and are intended to be repaid in full, along with fees and interest, on the borrower’s next payday. They can serve as a lifeline for those in urgent need of money, but they also come with high costs and potential risks.
According to data from the St. Louis Federal Reserve in 2017, the count of payday loan storefronts in the United States reached 14,348. This figure roughly equaled the number of Starbucks branches and slightly surpassed the count of 14,027 McDonald’s outlets.
A cash advance from Capital Bean means you can borrow from $100 to $35,000 dollars before your next paycheck. Click on “Get Started” to use our simple and straightforward application process and apply for a cash advance loan today. We work with lenders that offer instant decisions to receive your money the next day or within 24 hours.
What Types of Cash Advance Loans Can I Get?
Online payday loans are a popular type of short-term cash advance. They are designed to provide borrowers with quick access to funds to cover unexpected expenses or bridge financial gaps until their next payday.
Payday loans typically have a short repayment term, often due on the borrower’s next payday, which is usually within two to four weeks. Borrowers can apply for payday loans online, making the process convenient and accessible.
These loans often come with high-interest rates and fees, making them a costly form of borrowing. These loans are subject to varying regulations depending on the country or state, and some regions have imposed strict restrictions on payday lending practices due to consumer protection concerns.
Credit Card Advances
Credit card advances allow cardholders to withdraw cash from their credit card account. This option provides quick access to funds but they typically come with higher interest rates compared to regular credit card purchases. Additionally, there may be a cash advance fee.
Interest begins accruing immediately on the cash advance amount, unlike regular purchases that often have a grace period.The borrowed amount, along with the accrued interest, is usually repaid as part of the credit card’s minimum monthly payment.
Merchant Cash Advances
Merchant cash advances are a financial option primarily available to businesses. They offer a lump sum of cash in exchange for a percentage of the business’s future credit card sales.
Merchant cash advances are typically used by businesses that need quick capital for various purposes, such as expanding operations, purchasing inventory, or covering unexpected expenses. Repayment is linked to daily sales. The provider collects a fixed percentage of daily sales until the agreed-upon amount is repaid.
While merchant cash advances provide quick access to capital, they can be expensive in terms of the fees and the percentage of credit card sales that must be paid back. Some businesses find merchant cash advances appealing due to their flexibility, as repayments are tied to sales volume, which can be beneficial during slow periods.