Tax Refund Anticipation Loan

There are many instances where money is needed for various expenses before tax refund time comes, especially for business owners.  The monetary needs can range from needing restaurant equipment, to remodeling a business, and much more.  For all tax payers, there is something called a RAL, or refund anticipation loan.  This is a loan provided by larger tax firms like H&R Block or Jackson Hewitt.  The tax refund anticipation loan gives money to people and businesses in amounts similar to what they believe their tax return will be.  While this process seems like a novel idea, in most cases, the borrower ends up getting hit with extremely high interest rates, and in some instances, he or she gets to borrow much more than they can actually afford to repay.  That’s why a business cash advance is a much better method when it comes to borrowing money.  A business cash advance is usually given to merchants and businesses that have incurred some extra operating costs, and need a loan fairly quickly.

Unlike a refund anticipation loan, a business cash advance can offer business owners higher limits with much lower rates.  The process is fairly simple.  In most cases, businesses must just be able to accept credit cards as forms of payment from customers, be in business a minimum of one year, and be able to provide documents such as processing or banking statements to support their requested limits.  While the process might be slightly more intensive than when applying for a refund anticipation loan, people will not be hit with high rates and fees.  It has been found that some customers who applied for a refund anticipation loan ended up paying around 500% in interest and fees when all was said and done!  A business cash advance can offer much lower rates, allowing people to use the money for useful things such as advertising, renovations, equipment, and much more for their business.