A payday loan is a consumer financing option that typically provides customers with quick funding at a high cost. Payday loans are known for being a predatory lending option since they can be easy to acquire but costly to pay off.
Business payday loans are similar to traditional payday loans except, as the name implies, they are targeted at businesses, rather than consumers. Business payday loans are the nickname given to merchant cash advances (MCAs) and are often utilized by new or small business owners since they are generally short-term loans that come with easy approval. However, like consumer payday loans, these typically come with high interest rates and little flexibility.