Business Cash Advance



Business Cash Advance

Some may think that customer service is important to any business. Before any employee is able to exhibit any type of customer service the business must have the financial capital to open their doors. Here in the USA, around 50% of small businesses fail in the first year of operation. One of the main factors in any company closing is lack of capital. Lack of financial capital cannot allow business to continue at any rate. The economy has been less than forgiving in the USA with the slowing economy. One alternative that an establishment can utilize is a business cash advance.


The benefits of a business cash advance are that in a tough economic situation is that it can be very accommodating and supportive for a small business. Small business is hit harder by economic difficulties due to the smaller customer base. As a small business the biggest struggle may also be in gaining the proper credit for obtaining a small business loan to help cover expenses. In these particular cases, a business cash advance will allow instant qualification with minor credit requirements.


A business cash advance is a favorable alternative to a conventional bank loan. For one, a business cash advance will allow flexible payment schedule payments. On specific terms established by the borrower and lender the primary payments can be made quickly if the borrower is able to do so. When the businesses revenue picks up rapidly this allow the business the chance to make a number of payments quickly to repay the cash advance. The terms of the cash advance is for prompt cash, and should be paid as rapidly as possible. Secondly, the terms of the cash advance can be based upon the previous revenue history instead of credit history for an approval for a cash advance. Some lending institutions will simply require a very effortless application coupled with bank statements for a specific amount of months. Some lenders can take as little as 24 hours to approve a business cash advance.


The business cash advance is not a form of long term financial support. As in the long run the interest rates can be much higher than traditional small business loans. In the approval process as the lending institution does take in account the past revenue it can be tricky to project expected income based on the past data. This is one possibility for higher interest rates. In using the business cash advance the borrower may also have to agree to additional terms to receive the funds. The lender may also ask that that borrower needs to may use one of their accepted credit card processing companies. This will help the lenders to take a percentage from the revenue of the company upfront instead of waiting for payment.


Small business and big businesses can still benefit from the use of the business cash advance. The process is reasonably simple and rather immediate. The application and approval process can be as short as 2 days. The loan length can vary based on the profits from the specific company for previous months, so if the number is lower than projected income in the future that can make things easier to make payments quickly. Business cash advances allow small business to have a chance in a slowed economy.