How cash advance loans differ from traditional loans in Australia?

1. How cash advance loans differ from traditional loans in Australia? When anybody tells you about loans, you would probably imagine traditional loans which include a lot of paperwork and scrutiny from bank officials. However, there a lot of new lenders which offer new financial lending products called as cash advance or payday loans. These are quite different from the traditional lending model. Let us take a look at how the new cash advance model differs from the traditional loan model. Lesser procedure The major advantage of cash advance loans is that it involves less bureaucracy and procedure. For traditional loans, you need to go through a lengthy approval process. It involves proving your repayment ability to the bank via various means such as declaring sources of income and assets. You also need to declare outstanding loans and instalments. This can be quite lengthy and hectic process. In case of cash advance companies, all you need to do is provide proof of employment or fixed income for the last three months. Besides that, there are not many requirements except citizenship and residency in the country. Hence, you can get a cash advance loan with much less procedure. All-online process Many cash online businesses operate an online-only business which requires you to only fill out their online application form and submit scanned documents via the website. The approval process is completed on their end without you needing to ever visit their offices. On the other hand, if you are taking a loan from a traditional bank, you will probably need to make multiple visits to the bank offices. It is likely that you may also be visited by bank officials for verification. Thus, getting a cash advance loan via an online-only process is much simpler than the traditional loan process. Faster approval A major advantage of cash advance lenders is that their approval process is quite faster than traditional lenders. This allows you to face emergencies much better if you take a cash advance loan. A traditional loan needs manual approval at various stages. A Cash Loan advance forgoes and requires only verification of the documents, which can be completed quickly. Loan amount A cash advance loan is usually granted for a small amount, typically not more than a few thousands of dollars. On the other hand, a loan can be of a very large amount. This is due to cash advances being considered a risky loan. During traditional loan process, your repayment ability is verified and only then you are offered a loan. Repayment mode Cash advance loans are usually to be repaid at or just after the next payday, hence the other name payday loans. On the other hand, a traditional loan is repaid with several monthly or yearly instalments over a period of typically many years, depending on the duration of the loan. Though there are some payday lenders which offer a few instalments to reduce the repayment burden. Conclusion A Cash Advance loan varies from traditional loan in several ways. You can find a cash advance lender for you at Prontocash. Pronto Cash https://www.prontocash.com.au