Perhaps you’ve seen payday cash advance loan stores on street corners or in shopping plazas. Maybe you have found cash advance loan companies online. And there is a good chance you’ve heard someone criticize payday loans as an expensive way to get financing because the interest rates were too high.
But if you are in a situation with a fledgling business that needs a little bit of money, particularly if your credit score is suffering from the recession, you need to get past superficial impressions. What you should know is that millions of people use cash advance services to patch through a shortfall in money. They might use the money to pay bills, or to buy essential items on sale (a sale that will end before their next payday). In the case of entrepreneurs, an infusion of anywhere between $100 and $1500 (in some states there are no imposed limits) might make the difference between success and failure.
First, a primer: payday loans (a.k.a., cash advance loans) are borrowing against a portion of your next paycheck. The more you make the more you can borrow (up to state limits). The payback is generally automatic, a withdrawal from your bank account on your next payday. It’s simply a way to get money for a short term, at a time when that money can make a difference. Credit scores do not matter, nor are there restrictions on how you use the money. But there are three things you should consider:
- You decide if the money will help your business in the short-term – Would a $500 cash advance enable you to upgrade computers, purchase inventory or run a marketing campaign? Only you can decide.
- Choose your lender wisely – Online payday loans only make sense to the time-strapped working person. If you don’t have time to read the loan terms of six or eight or ten lenders use an aggregator that does that for you.
- Keep it a short-term cash advance – Those interest rates that people criticize regarding short-term cash advance loans ? They are usually citing an annualized rate. It will be much, much lower if you repay the loan in a few weeks or a month.
A payday cash advance loan can help you out when you only need a short time loan to make ends meet or to finalize a business deal. Would you take a short time loan if it would help you make more money?
Enter your email to subscribe to our future posts: