Many people think that payday advance and cash advances are one and the same. Though in broader terms this may be considered true. However, there are subtle differences.
Both are provided by banks or financial corporations, both are short-term high-interest loans and the amount is also comparatively less. The main difference is that the cash advance is mostly provided against a credit card or a line of credit.
Thus, a cash advance is more like purchasing something on a shop with your credit card, the only difference, in this case, is, you are actually taking money instead of an item. This amount is treated separately from the rest of your regular purchases in a shop and the interest rates usually vary.
For running a business, one may need money on a short-term basis for emergency situations and this is where both payday advance and cash advance helps. One can research on which is better for them, it may depend on the individual capacity and credit score. At times, financial institutions may also give some offer to attract customers, one should use them wisely.
One of my friends in the business circle had a funding problem and he was tending to go for a cash advance but luckily, he Got a great deal on a payday advance. Thus, one should be aware of various deals that are offered by financial institutions or one should talk to the agent or broker or manager of the institution and try to cut out a deal that works well for you.
There is always a possibility that you may not be able to repay on time and keep the loan rolling which could even end you up in bankruptcy. So, it is important to have a good rapport with the institution and keep them up to date about your situation and make the best of the deals available.…