Forbes: Cash Advance Loans Are an Evolution of The Personal Loan System

George Sun from Forbes analyzes the future of merchant payment processors. Due to some objective reasons (Covid pandemic and raising financial problems of the USA citizens) the companies are likely to switch from small businesses to personal clients with smaller demands. 

Before the pandemic, more than half of small businesses were obliged to demand financial aid. And they did not get the sufficient funds they needed. This situation made the loan company flourish. During the pandemic, the number of small businesses in the USA decreased, as well as their financial capabilities. 

The whole situation made the personal loan companies adapt to the new realities. They began transferring from the private entrepreneurs to average people, seeing the new source of stable incomes and guarantees in them. The cash advance online service has become one of the forms of that transfer. Financial analytics believe that cash advance can take a leading part in the rating of the most preferred types of loans for small businesses. It is possible due to several peculiarities of this kind of loan:

• Smaller sums make the repayment process simpler. When an entrepreneur has to take a quick loan with a big interest rate, the final sum to be returned is still not that big, compared to the popular business bank offers. The smaller sums are paid instantly, within one or two months, and the credit companies are more likely to suggest money to the clients who pay regularly. 
• According to the HartLoan.com experts, the time for the approval of the cash advance loan is significantly shorter than any bank can propose. It takes a bank from one to seven days to check clients’ information and give away a decision. Payday loan companies do it faster. The whole procedure can take not more than 24 hours from the client’s registration to money getting to their accounts. In the mentioned company, the approval is done online and does not take more than an hour. 
• Cash advance online companies are more flexible when it comes to loan details and payback terms. George Sun is sure that it happens due to a willingness of getting more clients and less strict risk management if the payday loan companies are compared with the banks. 

Finally, the cash advance online companies are better at prescreening their potential clients than banks. The last ones are not likely to suggest their services, while the payday loan companies use all the ways to communicate with clients and advertise themselves. 

Few More Cash Advance Advantages

It will be easier to explain the pros of the cash advance online system working for the small businesses on the example of the https://www.instantcashtime.com/ company. It is a renowned American online service with a clear and transparent workflow. 

• First, the cash advance is better because it does not require many documents to be checked. The client needs only identity and employment (private entrepreneur activity in our case) proofs. 
• According to the data, cash advance loans can cover the majority of immediate small business expenses. The sum of $1000 (the maximal approved sum in the company) can be enough to overcome minor problems. 
• The payday loan same day companies https://www.hartloan.com/same-day-loans/ provide clients with full support and guidance, starting from the registration process and finishing with paybacks. The constant communication with clients makes them more confident. 
• The payday loan companies are less likely to disapprove of the load due to the spoiled credit history. Smaller sums to be lent lighten the company risks. 

So, the convenience in taking, easiness of the payback procedure and less bureaucracy of the whole process make cash advance loans very attractive for small businesses. It is the main reason for the sphere to flourish and develop.