What is advance finance?
In simple terms, if you have to pay fees, bills or any type of payment and don’t have money, you can opt for a small lump sum amount of money. You can get this money from companies or banks, whichever you prefer. A cash advance works the same as credit. You get money in advance from advance financing institution or a bank for a small period of time, then return the amount plus interest(if applicable) to them.
What is the difference between loans and advances?
- Loans needed to be repaid in equal installments with interest.
- High-interest rates plus processing fee charged by banks.
- Long term duration for repayments.
- Various legal formalities needed.
- Advances needed to be repaid within a short period of time in a single transaction.
- Usually, no interest rate charged by the bank. Only the processing fee is applicable.
- Short term duration of credit for a maximum of one year.
- Very less legal formalities needed as compared to loans.
When to choose advances over loans?
It solely depends upon your needs, whether you choose to take advance or a loan. If you need a small amount of money, then a cash advance is a much better option than a loan. Because it’s short term with no interest rate and needs less legal formalities. But if you need a large amount of money then the loan is, of course, a better option. There are also various options from where you can get a loan or advance, such as banks, advance financing institutions or companies. Depend upon your preferences. You can also get advances for medical issues, financial issues or lawsuits from companies like LawCash. They can provide you pre – settlement fundings and post – settlement fundings, and more.