These are short-term loans offered by credit card companies, short-term lenders such as payday lenders and tax-preparation companies that offer money against an expected refund from the IRS.
Cash advances are a way to get money now against future income. Payday loans are typically used by consumers who need money until their next paycheck arrives.
The loans are usually easy to get, are for around 35thousand or less and are typically due on the borrower’s next payday. The finance charge can range from Rs 300 to 800 per every 7000 borrowed, equating to an annual percentage rate of almost 400 percent
A Merchant Cash Advance is a short-term advance of funds against a business’s receivables. To pay it back, a fixed debit, or in the case of some companies, a percentage, is taken directly off each sale daily or weekly. The Merchant Cash Advance business is a whole new industry that is booming, mainly because bank lending criteria have become so tight since the Great Recession that very few small businesses are able to qualify for bank loans.