There are many ways to borrow money — you can apply for loans and credit cards.
However, your application will probably only be accepted if you have a satisfactory credit history, but what happens if you have bad credit or your income is too low?
Your options are limited, that’s for sure.
In such a situation, options like cash advances seem a good idea.
Cash advances in Singapore are popularly useful for low-income earners in emergencies, but they can also be used as a budgeting tool.
Loan amounts and repayment terms for cash advances vary among different providers; some offer more attractive repayment schedules than others.
If you are considering borrowing a cash advance from a licensed moneylender, here are the most important things to know about them.
Everything You Need to Know About Cash Advance in Singapore
A cash advance loan is a short-term unsecured loan wherein a person does not need to provide property or assets as collateral. You can apply for an advance loan if you do not have a business or a regular income.
Cash advance loans provide quick approvals. People use advance cash loans as a supplement to their regular income or as a way to pay for unexpected expenses. You can use this type of loan for anything from paying bills and buying groceries to paying for a vacation.
Many lenders even offer cash advance loans over the phone and don’t require a credit check, making it simple to get money fast when in need. It is a convenient way to get quick cash in your pocket. You do not need to go somewhere and wait in line to get what you need. Simply fill in an application form, and provide basic information about yourself, and you will be approved for the loan.
Steps to Get a Cash Advance Loan in Singapore
Every lender has its application process and requirements. Here are some common steps:
- Fill out the online application form. Your lender may ask for information like your name, address, and sources of income. You may also have to provide bank account details so they can verify your identity and ensure you have enough money in your account for the loan amount requested.
- Provide supporting documents such as pay stubs or bank statements. Some lenders ask for this information before, while others will ask for it once they approve your loan application. They send it through fraud detection algorithms before approving or declining your application outright without contacting you directly. It happens especially when they suspect something wrong with the applicant, which could be illegal activity.
- Cash advances typically get approved within minutes, but it can take up to 72 hours for the funds to be credited to your account after approval.
How Much Money Can You Borrow from Cash Advance?
There are no set limits on the amount of money you can withdraw using a cash advance. The financial body determines the limit, and it may vary from lender to lender. They choose the amount based on your credit score and credit limit.
The Cost of a Cash Advance Loan
The cost of cash advances is typically the interest rate. It can vary depending on the provider and the amount of money borrowed.
The rate of interest will vary as per your credit score. You may qualify for a lower interest rate if you have a high credit score. The interest rate will be higher for low credit score holders.
The cost of a cash advance is usually expressed as an annual percentage rate (APR).
Types of Cash Advance in Singapore
1. Payday Loans
This type of cash advance is usually preferable for people who have bad credit scores. The borrower has to pay back the amount on the next payday. However, some companies can extend this period to six months with additional fees.
If you’re short on bills or need to take care of mid-month unexpected expenses, payday loans can help you ease your short-term financial worry.
2. Merchant Cash Advance
A merchant cash advance is a cash advance in Singapore that a third party provides to the merchants. It is one of the fastest-growing products in the financial services market, and it has become popular because of its ease and convenience. Merchant cash advances are ideal for businesses that have reached a plateau in growth.
Before applying, make sure your business meets these criteria:
- You have enough credit card processing revenue to cover the cost of the loan and interest payments.
- Your customers’ average ticket size is high enough to cover the costs of processing their payments.
- You can pay back this type of loan within 30 days or less.
3. Credit Card Cash Advance
If you have a credit card, you may be able to get a cash advance in Singapore on that card. You just need a credit card that has a cash advance feature. Make sure there is enough money on it to cover the cash advance. You do not want to apply for the cash advance if you do not have enough money available in your account.
You have to use your credit card to get cash from a store or ATM right away. You will probably have to pay an annual percentage rate (APR) on the amount of your cash advance, and it will likely come with fees as well.
If you need extra money and do not have the time to wait for your paycheck, a cash advance can be a lifesaver. Just make sure you know how much money you can withdraw before taking out one of these loans. You don’t want to end up needing even more money later on because you have already taken out too much from your account.
Begin your search for cash advance loans in Singapore with OnLineCredit. We are a licensed money lending company in Singapore, providing convenient and quick funding options for borrowers. Apply for a cash advance today and get your money credited in 24 hours or less.
