Cash Advance
A cash advance is a short-term loan that is typically used to cover unexpected expenses or to bridge a temporary gap in cash flow. It is a type of unsecured loan, meaning that it does not require collateral to secure the loan. Cash advances are typically offered by banks, credit unions, and other financial institutions. They are usually offered at a higher interest rate than other types of loans, and they are typically repaid within a short period of time.
History of Cash Advances
The concept of cash advances has been around for centuries. In the early days, merchants would offer advances to customers in exchange for a portion of their future sales. This allowed customers to purchase goods and services without having to wait for their money to arrive. Over time, the concept of cash advances evolved into what we know today as short-term loans.
In the modern era, cash advances are offered by banks, credit unions, and other financial institutions. They are typically offered at a higher interest rate than other types of loans, and they are typically repaid within a short period of time. Cash advances can be used to cover unexpected expenses or to bridge a temporary gap in cash flow.
Comparison Table
| Type of Loan | Interest Rate | Repayment Period |
|---|---|---|
| Cash Advance | High | Short |
| Personal Loan | Low | Long |
Summary
A cash advance is a short-term loan that is typically used to cover unexpected expenses or to bridge a temporary gap in cash flow. It is a type of unsecured loan, meaning that it does not require collateral to secure the loan. Cash advances are typically offered by banks, credit unions, and other financial institutions. They are usually offered at a higher interest rate than other types of loans, and they are typically repaid within a short period of time.
For more information about cash advances, you can visit websites such as Bankrate.com, CreditCards.com, and NerdWallet.com.
See Also
- Personal Loan
- Payday Loan
- Credit Card Cash Advance
- Line of Credit
- Debit Card Cash Advance
- Secured Loan
- Unsecured Loan
- Installment Loan
- Title Loan
- Pawn Loan
