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 $3,000 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. 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.
The content on this site is for informational purposes only and is not professional financial advice. MaxLend does not assume responsibility for information given. All information should be weighed against your own abilities and circumstances and applied accordingly. It is up to readers to determine if this information is safe and suitable for their own situations.
MaxLend, is a sovereign enterprise, an economic development arm and instrumentality of, and wholly-owned and controlled by, the Mandan, Hidatsa, and Arikara Nation, a federally-recognized sovereign American Indian Tribe. (the “Tribe”). This means that MaxLend’s loan products are provided by a sovereign government and the proceeds of our business fund governmental services for Tribe citizens. This also means that MaxLend is not subject to suit or service of process. Rather, MaxLend is regulated by the Tribe. If you do business with MaxLend, your potential forums for dispute resolution will be limited to those available under Tribal law and your loan agreement. As more specifically set forth in MaxLend’s contracts, these forums include an informal but affordable and efficient Tribal dispute resolution, or individual arbitration before a neutral arbitrator. Otherwise, MaxLend is not subject to suit or service of process. Nothing in this website is intended to waive or otherwise prejudice MaxLend’s entitlement to these protections. Neither MaxLend nor the Tribe has waived its sovereign immunity in connection with any claims relative to use of this website. If you are not comfortable doing business with sovereign instrumentality that cannot be sued in court, you should discontinue use of this website.