Types of Cash Advances

A cash advance is a form of instant cash loan offered by banks and private lenders. It has a short repayment duration and is notable for its high-interest rates. 

The most common form of cash advance in Australia is the credit card cash advance. With it, you can easily borrow up to $1,500 on your credit card. 

This article highlights the three types of cash advances and how you can apply for them. 

What this article covers:

1. Credit Card Cash Advances 

Credit card cash advances are popular because they’re easier to get than others. 

Your credit card provider offers you some money allowance on your card – credit line. You can borrow this fund as a credit card loan or cash advance. 

cash advance

So, while you can use your credit card to buy things (as in credit card loans), you can also take advance cash at the ATM using your pin. 

Another option will be to visit the local branch office of your card provider to get your cash advance loan or request a check to be sent by mail. 

Whichever means you choose, your loan starts counting from the moment it’s approved. 

Note: credit card cash advances have a separate interest rate calculation from credit card loans. 

2. Merchant Cash Advance 

This type of cash advance offers loans to businesses with online operations. Usually, companies with low credit scores are beneficiaries of it. 

The lenders overlook the business’s credit score and focus on other sources. For instance, the lender can consider how much you receive through your online accounts. 

cash advances

3. Payday Loans 

A payroll loan advance is a type of credit given to income earners. Payday lenders don’t consider your credit score in this case – they check your income report to qualify you for the loan amount. 

With payday loans, you can get a minimum of $200 cash advance. However, expect to pay at least $15 for every $100 you take out. 

To get a cash advance til payday, you can visit your local loan lender’s office, where you can fill out a form for how much you want and the rates. After approval, you receive cash at the counter. 

However, some lenders now have websites where you can request a cash advance online in minutes. After registering on the platform, you can request a loan by filling out the online form. On approval, the lender will transfer the cash advance to your bank account. 

Further, several employers are now providing pay advance systems in workplaces. With this, employees can apply to take out an allowed percentage of their salaries before their payment date. While some generous employers make this interest-free, you might pay some fees in a few instances. 

advance cash

What Do I Do to Get a Cash Advance? 

Here are two simple steps to get a cash advance: 

Choose a Loan Type

You can start by choosing one of the cash advance loans we listed above. This way, you can find a reliable lender that operates in that vertical. 

Choosing based on your goals will be a better way to go. For instance, you can select a payday loan if you’re an income earner and your company offers it. Or you can take a merchant loan if you want to start your small business and need funding. 

Register & Apply

After choosing a lender, you can proceed to the registration page (if the lender has a website) or fill out the registration form at their office. Then, you can proceed to apply for the loan of your choice. Depending on the lender, the process might take a few minutes before you get the cash. 

cash advancement loans

Conclusion 

Cash advances can help you settle emergency financial challenges. They’re easy to get and don’t need any documents. To get one, select a type of loan, register with the lender, and apply.

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