A cash advance loan is an unsecured loan that matures on your next pay date. cash advance loan are financial tools to help with immediate cash needs between pay checks. Typically you will fill out a cash advance loan application which usually consists of name, address, employer, bank, payroll information and how much you want to borrow. When you submit your loan application, your cash advance loan request will go thru underwriting. If approved, the lender may make some final checks such as verify employment or ask for a recent pay stub. if everything checks out the funds are given to you either via funds transfer, a paper check or cash.
Most cash advance loans are renewable. This means that at your next pay date, if you cannot pay the finance charge and the principle back, you may opt to pay only the finance charge and have your principle amount renewed for one more pay period.
Most lenders will require that you eventually pay back the principle portion of your cash advance loan. Usually, if you renew your loan 4 or 5 times, you will be required to pay back a portion of your principle on your next pay date. Most cash advance loan lenders will require between $25 and $50 of principle to be paid back in addition to the finance charge that is due. Usually, this continues until you have paid off the cash advance loan in full.
Incidentally, if you are wondering, a cash advance loan is one in the same. cash advance loan have relatively high annual percentage rates (APR) because no collateral is required to get a cash advance loan and your credit rating can be very low and you still qualify for a cash advance loan. The trade off is that you do get the money you need for your cash needs.
Zed Miller, an expert business writer, regularly contributes his articles to various websites just to help merchants, small businesses and retail houses to expand their market base by accepting the prevailing mode of payments. Visit http://www.merchantservicez.com/What-is-a-cash-advance-loan.htm to read more articles from this author
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