Four Instances When A Cash Advance Might Be A Strategic Move
If you are thinking about taking out a cash advance, a lot of initial advice might guide you not to do so. The thing is, cash advances aren't always a bad option, and sometimes are the best choice depending on your specific situation. Here are four times a cash advance might actually be worth it for your needs.
1. Starting a Business
If you are starting your own business, having cash flow up front can be tough. If you don't have savings or an investor, you may turn to credit cards as your only option to get things going. Another alternative is a merchant cash advance. This type of advance will still have fees, but you might be able to find a lender that has better rates than even your low-interest credit card.
2. A Short-Term Loan
If your cash advance truly is a short-term loan, this won't bite into your budget too badly with fees and interest. As long as you are dedicated to paying this back as quickly as possible, cash advances can work to your advantage. An example would be seasonal work where you may come into guaranteed money in a short period of time that you can use to pay this back. The delay in paying back cash advances is what makes them more costly.
3. If a Sale Outweighs Fees and Interest
If you come across the sale of the century, you might not want to pass this up just because you need a cash advance to purchase. Sometimes a sale on a larger item, a rebate, or a two-for-one deal can actually be so cheap that this will outweigh the fees incurred from a cash advance.
4. Emergencies When Cash is the Only Option
Sometimes, cash is the only form of payment that will be accepted. If you are in an emergency situation such as a home or auto repair, credit cards aren't going to get you anywhere if they only accept cash. You can pay with a cash advance that you can then settle quickly with other forms of savings or transfer to a lower interest credit card.
You may be reluctant to opt for a cash advance, but this isn't always the worst option. You have to look at your specific situation and see if the pros outweigh the cons. Don't write off cash advances completely until you really make sure this option won't work for your unique needs. Companies like USA Cash Services can help you determine if a cash advance is right for you.
