If your business is in need of a proverbial shot-in-the-arm, then a business cash advance may be the answer. It is like receiving a business loan however it is typically easier to get a business cash advance. The main purpose is to boost your business working capital if you see an opportunity for your business and can only reach your goal with more resources.
The money received from a cash advance is based on accounts receivable. You will not be required to directly repay the loan and instead it goes through your credit card merchant account with a percentage of every transaction that is made by your business.
It is important that you do your research before choosing a business cash advance provider to find out what exactly the options are costs are going to be.
Cash Advance Table of Contents
* Business Cash Advance Help – The Guide
* Merchant Cash Advance Terms
* Who is suited for a Merchant Advances or Factoring Services?
* Who Qualifies for a Business Cash Advance Loan?
* The Cash Advance System
* How Much Does a Business Cash Advance Cost?
* How to choose a Business Cash Advance or Factoring Provider
* Merchant Cash Advance Tips
How exactly do business cash advances differ from business loans?
Business cash advances are based on merchants’ future credit card transactions. Unlike traditional loan programs, a cash advance is totally unsecured (does not require collateral or a personal guarantee). The program is available to business with good or bad credit. Because the merchant cash advance is based on future credit card receivables, a good credit score is not required to be approved. Unlike loans, applying for a business cash advance takes literally minutes and approval is typically done within 24 hours.
What can business cash advances be used for?
Merchants are free to use funding from their cash advances for anything they desire. Unlike other financing options available to businesses through banks and private lenders, we do not require a plan for the funding and we don’t require that it be used for any specific purposes. A cash advance can be used for expansion, renovations, payroll, equipment, general business cash flow, or anything that you decide.
What types of businesses / merchants are eligible for the cash advance program?
Any business that processes a minimum of $2500 per month in credit card transactions and is not a home based business can be approved for a merchant cash advance. Start-ups and home based businesses are currently not eligible, and businesses must currently be processing credit cards with a physical terminal (paypal and other online payment gateways do not qualify).
How is a business cash advance repaid?
Repayment on business cash advances are simple and easy to manage! The best features of a business advance are: automated and flexible payments. Because advances are based on future credit card sales, your business pays back its advance based on sales volume – making repayment amounts suited to your business ability to make those payments. When receivables are slow, payment amounts are less, meaning we work within your business’s cash flow situation.
