Cash advance is a label commonly used in offices to refer to a loan made on someone’s own salary. One of the benefits of being employed is being entitled to a cash advance should a need arise.
A cash advance works by letting the employee have his or her entire salary or a portion of it before the designated payday. This is especially useful for emergency situations and circumstances that simply don’t fit a person’s normal projected set of expenses such as sickness, bereavement in the family or accidents to name a few.
Because it is a money matter, most companies would have terms and conditions regarding cash advances. These terms have to be in coherence with existing labor laws and policies of certain states or countries. For instance, some employers might have a corresponding interest rate for cash advance or follow terms similar to the mechanics of some cash loans.