A cash advance is a type of short-term loan provided by a bank, credit card company or alternative lender. There are many different options to secure a cash advance, depending on your individual circumstances. Here are four types of cash advances.
1. Merchant Cash Advance
A merchant cash advance is usually obtained by small businesses in lieu of a traditional loan. This type of cash advance Mississippi is a good option for businesses who lack a great credit score and desire quick cash with an easy approval process. Merchant cash advances work best for companies that rely on debit and credit card sales. Companies who opt for this source of funding can use the cash however they wish to improve their business.
2. Credit Card Cash Advance
A credit card cash advance involves withdrawing cash from your credit card account, essentially taking a cash advance on your credit card. This differs from using a debit card to withdraw cash because debit card withdrawals are your own funds whereas a credit card cash advance is a loan from your credit card company. Factors to consider when obtaining a credit card cash advance include:
- Cost of the transaction fee
- Annual percentage rate
- Length of the interest-free period
3. Payday Loan
Payday loan amounts vary by how much money the borrower makes rather than the borrower’s credit score. Payday loans are generally for smaller amounts of money and are expected to be paid off within a short amount of time, usually when the borrower next receives a paycheck.
4. Installment Loan
Installment loans involve borrowing a set amount of money all at once and agreeing to pay back the loan through a set number of payments. Some types of installment loans include auto loans, student loans, and mortgages.
If you are in need of money to make a purchase, consider one of these types of cash advances.