Business payday loans help with start-up costs for small businesses. They can also help repair temporary cash-flow issues.
(PRWEB) July 12, 2012
A cash advance merchant will provide small businesses with access to capital that is quicker than a traditional loan and the re-payment process is easier to pay. Funds from a cash advance business is not really considered a loan, per se. Merchants see it as an exchange of funds for future income because the payments are made from a business’ daily credit card receipts. This type of loan is usually provided to service-type industries.
The advantage is that the payments are more flexible, there is no due date, and the payments come out of income so there is little risk of defaulting on the debt to the lender. Another advantage is that there is usually no credit score check, nor is there a requirement for collateral. It is usually okay if a business as bad or little credit.
Disadvantages are that the premium rate is pretty high at 30% (or higher) and interest can be 60% to 200%. That may hurt a bit, but the advantages may outweigh the disadvantages
Business payday loans help with start-up costs for small businesses. They can also help repair temporary cash-flow issues. There is no credit check or collateral needed. Anyone over the age of 18 and a U.S. citizen can apply. They may need to provide the lender with information that usually includes a checking account and a Visa or Master-card for payments. The debt must be paid by the time of roll-over or there is a steep penalty. The advantage is that the payments are flexible, based on business sales.
Individuals can get a personal cash advance through their credit card, which can be up to their credit card limit (sometimes this amount less than the credit limit). The debt must be repaid within a certain time-frame stipulated by the issuer.
The advantage is that there is no long application, but the risk is that the borrower may be charged a higher interest rate after the debt is paid.
Personal payday loans are considered short-term loans as they come due at the borrowers next payday. The fees are high at $15 to $20 per $100 borrowed. The lender of the personal payday loan will ask for bank account information and proof of work.