Loans and Advances – How Do They Work?
Maybe you have a No.1 go-to when you have an emergency and need funds fast: The internet. You start researching your options to get the money you need to pay your bills, but all of the words and the terms that the banks and direct lenders use can be confusing. Now that you’ve found information about loans and advances, is there a difference?
What Is an Advance?
When you think of short-term loans, you might be thinking of advances or cash advances. Examples of these are payday advances you can get from local stores that specialize in check cashing. You may provide this company with a check in the amount you wish to borrow. The company gives you the money as an advance, minus its fee. The fee covers the interest on the money you’ve been advanced. When your next payday comes around, this business will take the check you have given them and cash it in.
Though this can be a quick and convenient way to get funding, there can be drawbacks. For example, you might not have the money to pay back the entire advance by your next payday and still have enough cash left over to live on. What are you supposed to do?
Advances are very short-term loans – but the way they work can be different than traditional loans.
What Is a Loan?
Traditional loans are when a lender provides funding to a borrower to be paid back on an agreed-upon schedule. A set interest rate is typically charged on loans, as agreed upon by the lender and the borrower. You have probably seen the terms secured and unsecured in your browsing, but what’s the difference between secured and unsecured loans? Some loans are secured, meaning that the borrower must provide collateral, which can be anything of value that will be surrendered to the lender if the loan isn’t paid back as promised. Other loans are unsecured, meaning that no collateral is necessary. Many people who need money now but can’t afford to pay back the money right away opt to take out short-term unsecured loans from reliable online direct lenders like MaxLend.
Payday Loans Online
Hopefully, the difference between advances and loans is clearer now. Even so, some people may still seek payday loans online – which they may have a hard time finding. Instead, payday loan alternatives, which are unsecured loans, might be what they find. At MaxLend, we are direct lenders for installment loans. These cash loans help people who want to find a payday loan alternative from a direct lender online.
What Does MaxLend Offer?
At MaxLend, we offer short-term unsecured loans, with up to 10 months to pay back the loan in installments. We are one place where you may be able to get emergency cash. Our online loans are unsecured, meaning collateral isn’t necessary. Also, you don’t have to specify what the loan is for. Some of the common reasons MaxLend customers may apply for loans include paying for medical bills, car repair bills, and other unexpected emergencies — or even as part of a smart budgeting plan.
Is a MaxLend Loan Right for Me?
Understanding the difference between loans and advances may help you determine if a MaxLend loan is right for you. And now that you have a better understanding, what are you waiting for? You can apply for cash online with MaxLend. All you need to do is fill out a quick and simple application on our website.
At MaxLend, we offer unsecured installment loans up to $3,750 and even have a loan loyalty rewards program with perks for our best customers. The best part is that MaxLend can provide Same Day Funding to those who qualify.* You can read MaxLend reviews to see what people like you are saying about us.
Contact Us Today
If you have questions, check out our Frequently Asked Questions page. If you still have questions, our Customer Service agents are available 24 hours a day to answer questions about how you can get funding with an unsecured loan. Just call us at 877-936-4336.
*Same Day Funding is available on business days where pre-approval, eSignature of the loan agreement and completion of the confirmation call, if a call is required, have occurred by 11:45 a.m. Eastern Time and a customer elects ACH as payment method. Customers who complete this process by 1:30 p.m. Eastern on business days may still receive funds on the same day, but some banks may not disburse the funds until the next business day. Other restrictions may apply. Certain financial institutions do not support same day funded transactions. When Same Day Funding is not available, funding will occur the next business day.