The cash advance form is not a new document. In fact, businesses have granted cash advances to employees for a number of decades. More recently, a type of cash advance form has developed when consumers wish to arrange a payday loan with some type of lending service. Here are some examples of what sort of information would be included on this type of document in each of these settings.
Employers may choose to advance cash to employees for several reasons. It is not unusual to issue an advance if the employee will be traveling on behalf of the employer. When this is the case, the employee normally submits a cash advance form or request that clearly identifies the employee by name, department, and job position. In most cases, the scheduled departure and return dates associated with the business trip are also included, along with a brief description of the reason for the trip. The form will also specify the amount of funds requested and often requires a breakdown of the anticipated expenses that the advance will cover, such as hotel bills, food, and airfare.
Many companies that offer a payroll advance to employees in the event of an emergency situation also have a special cash advance form to document the procedure. Like the travel advance request, the form to obtain a payroll advance will include all the basic identifying information about the employee. Many forms will require some sort of general description of the nature of the emergency, such as auto repairs, illness or other unforeseen situations. Depending on the amount advanced to the employee, the cash advance form may also indicate the terms for repayment, such as a specified amount to be deducted from future payroll checks until the amount of the loan is repaid.
With both these types of advance forms, the document usually requires the signature of the employee and the authorization of someone in the organization with the ability to approve or deny the request. Without proper authorization, cash advance form cannot be used to advance funds to the employee.
Along with use in an employer/employee environment, the cash advance form also serves as an application when a consumer seeks a short-term loan from some type of cash advance vendor. The form normally calls for the full name of the applicant, physical address, employer information, and the amount requested. Often, the form also includes space to include checking account information, since the approved applicant will be responsible for providing the lender with a post dated check for the full balance of the pay day loan and the accrued interest. Many payday lending companies also require a copy of the latest bank statement as well as one other verification of address, such as a utility bill.
As with all types of loans, using a cash advance form to obtain funds in advance does constitute entering into a binding agreement with the employer or the payday loan provider. The recipient of the advance is expected to comply with all terms and conditions related to the advance in a timely manner. Companies usually place a limit on how many cash advance they will process for an employee in a given calendar year. Payday loan providers usually do not impose a limit as long as the borrower consistently pays off each advance according to terms.
A cash advance form or application with one of these short term lenders will also normally include terms and conditions that the applicant must read and sign before the loan is granted. Essentially, the terms focus on the amount of interest charged, when the loan will come due and what type of legal action the lender may take in the event that the check provided by the applicant does not clear.