Alternative financing may be your best bet
A business cash advance is designed to help people get off on the right foot or regain their footing after an emergency. Unlike a payday loan, they aren’t a quick fix. Instead they are an option that allows you to fulfill your financial obligations without putting pressure on you to pay the funds back within a few days.
Online lenders are available to help you find a loan that allows you to take care of business, while giving you ample time to pay the money back. Many lenders have physical locations where you can go in and fill out the application and receive the money in a short amount of time. Others place the money on debit cards. A debit card can be used in much the same way as a credit card, the main difference being, you only have access to funds that have already been prepaid into the account.
Cash advance loans can be paid back over the span of one or two years, depending on the type of agreement you have with the lending company. Payday loans, on the other hand, must be paid back in full on your next payday. If you can’t pay the money back, you can take out another payday loan that will allow you to extend your original agreement until your next pay check. This creates a cycle that eventually ends when the number of extensions has been reached and you have to go through a cooling down period before being able to borrow again.
Cash advance businesses charge interest much like other lenders. Their rates can be rather high, but they give you the opportunity to extend your payments out over a longer period of time. Unlike traditional loans, cash advances are not based on credit scores or past payment history. The use the added interest to reduce the risk of any possible loss they may incur.
Another benefit of obtaining a cash advance is that companies who lend money in the form of a cash advance loan will report good payment histories to the credit bureaus. This helps someone who has otherwise poor credit rebuild it in a relatively short amount of time. Payday loans only report negative information back to the credit reporting agencies.
Cash advance loans have all of the perks a payday loan does, but with better advantages. They are fast, convenient and easy to obtain. The ability to pay the loan back over time is often the most common reason people choose cash advances over payday loans. Depending on your situation, getting the extra time can mean the difference of whether or not you will be able to regain control of your finances. This one small advantage can be the deal breaker for most people who are looking ot borrow funds on a short term basis.