Understanding Business Cash Advances
Are you looking for a fast way to get more money to help your struggling business? If you've been operating for a year and accept credit cards, you might consider getting business cash advances. These are short-term loans that you can essentially use for any purpose.
Unlike traditional business loans that are hard to obtain, business cash advances are a quick way to inject cash into your business. Since they are unsecured business loans, they don't require any credit check or collateral. They are ideal for businesses with no credit history. The loans are usually based on credit card receipts. In short, the cash advances you get depend on the average number of credit card sales you process in a month.
Applying for a business cash advance is usually a fairly streamlined process requiring a minimum of paperwork. Contrast that against the process of obtaining a standard business loan which involves more complicated paperwork and a long stable credit history. Most new and smaller businesses have some difficulty acquiring these loans due to their volatile or short-lived credit history. A business cash advance avoids having to submit a detailed business plan or tax records. Instead, applicants only need to fill out a basic form and submit credit card receipts.
In contrast to standard business loans, business cash advances often have no fixed repayment schedule. The manner in which you pay back your loan depends on the number of credit card sales. For instance, if a customer uses a credit card to pay you, a portion of that amount is immediately deducted to pay back the loan. This takes away the pressure of paying a fixed amount every month. Also if you have high credit card sales, you'll be able to pay off your loan in a short time.
"The best part of business cash advances is that the cash is nearly instant. For a business struggling with a sudden emergency, the quick infusion of cash is welcome. Approval usually takes a day or two and the cash is received in about seven to 10 days. In some cases, it can be received in as little as 24 hours," explains Josie Myers of WiseGeek.com.
Of course, not everything is perfect even with business cash advances. The downside is that you have to pay higher application fees, processing fees and interest rates. The loans themselves are quite small and only amount to a few thousand dollars at most. Still, if you're looking for instant cash this may be the best way to go.
Unlike traditional business loans that are hard to obtain, business cash advances are a quick way to inject cash into your business. Since they are unsecured business loans, they don't require any credit check or collateral. They are ideal for businesses with no credit history. The loans are usually based on credit card receipts. In short, the cash advances you get depend on the average number of credit card sales you process in a month.
Applying for a business cash advance is usually a fairly streamlined process requiring a minimum of paperwork. Contrast that against the process of obtaining a standard business loan which involves more complicated paperwork and a long stable credit history. Most new and smaller businesses have some difficulty acquiring these loans due to their volatile or short-lived credit history. A business cash advance avoids having to submit a detailed business plan or tax records. Instead, applicants only need to fill out a basic form and submit credit card receipts.
In contrast to standard business loans, business cash advances often have no fixed repayment schedule. The manner in which you pay back your loan depends on the number of credit card sales. For instance, if a customer uses a credit card to pay you, a portion of that amount is immediately deducted to pay back the loan. This takes away the pressure of paying a fixed amount every month. Also if you have high credit card sales, you'll be able to pay off your loan in a short time.
"The best part of business cash advances is that the cash is nearly instant. For a business struggling with a sudden emergency, the quick infusion of cash is welcome. Approval usually takes a day or two and the cash is received in about seven to 10 days. In some cases, it can be received in as little as 24 hours," explains Josie Myers of WiseGeek.com.
Of course, not everything is perfect even with business cash advances. The downside is that you have to pay higher application fees, processing fees and interest rates. The loans themselves are quite small and only amount to a few thousand dollars at most. Still, if you're looking for instant cash this may be the best way to go.