Understanding Cash Advances for Cash Flow Problems
Suffering from cash flow problems?
If you’ve found yourself faced with an unexpected bill just before payday, then you may be wondering the best way to supplement your monthly income. Instead of opting to put your expenses on your credit card or your overdraft on your bank account, you could consider a cash advance.
Cash advances are designed to ensure that you are able to bridge the gap until your next payday, in order to pay things such as bills and monthly expenses. At Flexy Finance, we help find cash advance loans from £100 to £5,000.
What is a Cash Advance loan?
A cash advance is a short term loan which can be applied for and borrowed quickly in an emergency. Cash advance loans are repaid, usually upon the applicants next payday, for relatively small amounts, equal to a month’s salary.
How does a Cash Advance work?
A cash advance loan works just as a payday loan would. You can apply for these types of cash loans online, within 15 minutes. Once you have submitted your application, a lender will review your application and carry out the appropriate checks to see whether you are eligible to borrow credit.
Should I borrow money if I'm already in longstanding debt?
It is not advisable that you borrow money to cover long standing debts. Borrowing money to cover long standing debts or borrowing more than you can afford, can lead to financial difficulties.
If you are having problems with debt you can contact the following organisations who are able to provide free advice to people struggling with debt:
How does representative APR work?
APR stands for ‘annual percentage rate’. Representative APR is the total cost of borrowing money over a year, which includes the interest and standard fees you will have to pay.
It is ‘representative’ as 51% of applicants will receive the same rate of interest, or lower, that is advertised by the lender. Therefore, it is not guaranteed that customers will receive the same APR that is advertised.
Instead, a customer will likely be offered a personal rate on a loan, which can be lower, higher, or the same as the advertised APR. Personal rates are generally influenced by factors such as credit score, personal finances and how much you want to borrow.
With the lenders we work with at Flexy Finance, the representative APR that we advertise is 1013.30% APR.
What can I use a Cash Advance loan for?
As the loan amount is generally for smaller amounts, less or equal to a month’s salary, they are designed to be used in cash flow emergencies for things such as, but not limited to;
- Home and appliance repairs
- Appliance replacements and car repairs
- Utility bills and living costs
- Rent and mortgage payments
How much can I borrow?
We help applicants to find the best deals with low-interest rates on short term finance, such as cash advances and quick loans. With us, you can apply to borrow £100 to £5,000 over periods starting from as little as a month to 2 years (24 months).
How long can I borrow for?
At Flexy Finance our loans can last as little as a month, to 36, depending on the amount you wish to borrow and your circumstances. So whether you decide to borrow for periods of 6 months or 12 months, or make the total repayment on your next payday, it’s up to you.
Usually, cash advance loans are repaid upon the applicant’s next payday and should not be used for long term periods.
How can I apply for a cash advance loan?
If you’re considering applying for a cash advance loan you can apply via Flexy Finance. As a credit broker we work with top UK lenders to get a loan that suits you. Applying for a cash advance loan is easy and can be done via an online application, which can be completed on your phone or from your computer.
Step One - Completing the online form
The first step is to complete the online application. It is quick and simple to complete and asks you to provide some personal information which will be used to assess your loan application.
- Choose how much you want to borrow and how long you need to repay: Tailor your loan, from £100 - £5000 with a repayment plan of 1 - 24-months. A cash advance loan is usually used to cover a small cost for a month.
- Personal & contact information: We require some basic personal details such as name and birth. We also need your email and phone number so we can get in touch with you.
- Home address and details: We require your current home address and also some further details, such as how long you have lived there.
- Employment and income details: We look to get a better understanding of where you work and for how long you have worked, as well as your monthly take home pay.
- Monthly expenses: We look at how much you spend per month to help us assess the affordability of the loan you have applied for.
- Banking information: We ask for your banking information so that if your application so that lenders are able to transfer the loan directly into your bank account.
Step Two - Finding a lender for you
Once you have submitted your application, we will compare lenders to determine which one is better matched for your loan. The lender will review your application and carry out the appropriate checks to see whether you are eligible to borrow credit.
The lender will then offer you a cash advance loan. Before you accept the loan it is vital that you carefully review the terms and conditions of the cash advance loan. If you have questions about the loan then make sure to ask the lender. If you are uncertain about the loan, you can opt out at any point before accepting the application.
Key details that you should look for include:
- Loan amount
- Repayment terms
- Interest and APR
- Additional fees and charges
If you decide to accept the loan offer, you are bound to the terms and conditions of the loan. You will not be able to opt out of the loan once you have agreed to the contract.
Step Three - Receiving your money and making monthly repayments.
Once you have accepted the loan and everything has been agreed and approved by the lender, you will receive the money directly into your bank account. The time taken for the money to be transferred into your account varies, so make sure to clarify it with your lender.
Following the transfer of the cash advance loan, you will be obligated to start making the monthly loan repayments. It is advised that you should know how much money you need to repay each month and what the deadline is for your repayment. So make sure to check with the lender the full details of repaying the loan.
What are the advantages of Cash Advances?
There are many benefits of cash advances; they include;
- Quick in an emergency: receive your loan approval decision in less than 15 minutes*.
- Flexible monthly repayments: repay your loan in 1 to 24 months.
- Borrow £100 - £5,000: cover the costs of your emergency.
What are the disadvantages?
While these loans are great for helping you in a short term cash flow emergency, they should not be used for long periods. You should always ensure that you only borrow what you need to cover the costs of what you need, to make sure you are able to repay the loan amount in addition to any fees or interest as stated by the lender.
Borrowing more money than you can afford to repay back could cause financial hardship in the future, and it is any responsible lender or broker’s responsibility to safeguard your best interests.
For more information on how to deal with debt, you can visit the Money Advice Service.
Frequently Asked Questions FAQS
How do I apply for a Cash Advance in the UK?
To apply for a cash advance with us; you will be required to fill out an application form with the following information;
- Personal details
- Financial information
- Employment and income details
Once your application has been processed and you have approved, you will need to agree to the terms and conditions issued by the lender. When this is agreed your loan will be processed and can be transferred to you in as little as 24 hours.
Am I eligible?
Different lenders will have different lending criteria which you will need to meet in order to be eligible to take out a cash advance loan. At Flexy Finance, we require that all of our applicants are;
- 18 years of age or older
- Earning at least £750 a month
- UK resident for the past 3 years
- Valid UK bank account holder
Why choose Flexy Finance?
We specialise in helping applicants to find cash advances to help them until their next payday. If you’re looking to borrow a cash advance for £100 to £5,000, from periods starting from a month, see how we can help.
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