A lot of people use cash advance and payday loans as synonyms, but they aren’t exactly the same thing. Though both are short time lending options with many similar characteristics, there are some major differences as well. When you are in a bad monetary situation and need help tiding over the problem, you can opt for either of the two options. Knowing how they differ might help you make the right decision easily.
Reason for the loan
For what reason you require the loan can help you determine the right option for you. If you need a loan to meet any business needs such as expanding your office space or increasing your marketing budget then you should opt for a cash advance. Payday loans such as Cashfloat are more personal, they are also meant only for salaried individuals. If you need to suddenly spend more cash then you currently have, payday loan will be a good option.
Requirements you need to meet
Though the requirements for both cash advance and payday loans are quite lax compared to conventional loans, there are still some requirements that you have to meet. Not only that the requirements vary quite a lot between the two kinds. Cash advances are tailored for business purposes and often require bank statements for previous 6 months; you will also probably need to have a debit or credit card. For payday loans like Cashfloat, you will need to provide identity proof, proof that you are employed and a post dated check.
How much you can borrow through cash advance depends on how well your business is doing. Usually you would be able to borrow 50% to 80% of your monthly revenue, though this number varies from lender to lender. Payday loans are for amounts up to $1000. How much of that amount you will actually be eligible for depends on the lender, some lenders will not bother with a credit check at all and will loan you an amount based on your monthly salary while others might look into your repayment habits before making a decision.