Analyzing the Utility of Cash Advance Services in Improving the Cash Flow of Businesses
The COVID-19 pandemic has had a horrendous impact on the global economy due to both demand- and supply-side shocks to the economy. While supply-side shocks to the economy were due to the lockdowns and social distancing norms, demand-side shocks were a result of a much deeper and complex problem. The uncertainties caused by the pandemic made businesses hesitant to spend and invest money, thus leading to a drastic fall in consumption. To solve this problem, banks across the globe started pumping money into the economy to increase the cash flow and revive the demand. Along with this, governments allowed banks to frame mechanisms to provide quick loans to people and businesses who were looking for urgent cash access. The advent of cash advance services is a result of these mechanisms and deliberations. How have cash advance services helped in improving the liquidity in the economies? One main problem with traditional lending institutions is that they have complex loan application an