A clear advantage of a cash advance is the flexibility of repayments. Loans require repayments via periodical, fixed instalments whether you can afford it or not. So when you have a slow month, you still need to pay the monthly instalment, or face a penalty fee.
A cash advance automatically takes off a percentage of all your debit and credit card sales, so if you don’t sell much, only a little is repaid. If you sell a lot, the % repayment fee adds up so you pay more that month – all very flexible. Given this flexibility, you may pay off everything within a few months, or it could take over a year.
Typically, cash advance providers can offer up to 100% of your average monthly card takings, but some of them can offer you more. It is also common they let you top up your advance after you have repaid a certain amount of the original advance total. Only card sales are considered, so you get to keep everything from your cash transactions.
The only fee you are charged is a flat amount that is added to the sum total you need to repay. There are no other fees or interest added, but it is generally expected you are able to repay the advance within a year through a percentage that is typically 15-20% (can vary widely). You can generally choose the loan amount and sometimes repayment percentage upfront, within the limits offered.