Cash advance interest rates are a vital part that a business owner should take into consideration while thinking about attaining a short-term business loan since there are many things that can hinder someone from obtaining one. While it is a well-known fact that cash advances with credit cards are quite expensive, let us take a look at how much expensive they are compared to other options of obtaining cash advance loans.
Getting a cash advance is incredibly easy; all you have to do is to use your ATM card or credit card to withdraw cash advances which are like short-term loans but with incredibly expensive interest rates. The process might seem easy but they come with a huge variety of fees and expenses that are much more than a simple ATM withdrawal.
For example, a business owner can take a small cash advance loan from their credit card of about $300. He/she will then be hit with the cash advance interest rate that is at about 4%. But that is not all because they will also have to pay the normal credit card transaction fees which amount to about 2% – 5%. So, you will have to pay $30 in interest alone when paying it back. while this might still feel doable, this is still just for the small cash advance loans, while the rules for big cash advance loans from banks are much bigger, and the cash advance interest that one will have to pay will also be much more tiring coupled with the other problems a business owner might face when seeking large business loans from banks such as:
- Slow service: The entire process of bank loans is designed to be ponderous and tedious. Due to their slow-paced bureaucracy, one will waste a lot of his/her precious time in just going through the loan process.
- Restrictions: Bank loans come with a variety of restrictions on their head, you will not be allowed to raise your own points and make changes in the policies. Or even use the money that you obtain from them in any other way than what was in their imposed terms.
- Collateral: Banks ask you for collateral on top of their cash advance interest; this can be anything from your house to your business as well. Failing to make payments can result in the loss of one’s home.
Fortunately, there are better options through which you can take cash advance loans than credit cards and banks.
Merchant Cash Advance
Merchant Cash Advance is a method through which business owners can attain cash advance interest loans at a much faster and less tedious way. Here are a few benefits that come with Merchant Cash Advance:
- Fast paced service: The entire process of Merchant Cash Advance is built to be business-friendly and so it can be finished in just twenty-four hours.
- Zero restrictions: Merchant Cash Advance allows you to raise your opinions and make changes in its flexible policies and use the money however you want. And they will not even ask for any collateral whatsoever.
Although Merchant Cash Advance is one of the best methods of obtaining finance for a business. The interest rates involved are not for everyone. It’s rates can vary depending on your needs, credit history, whether you put something up for collateral or not, and other factors. Search thoroughly for the best merchant cash advance provider to suit your needs today!