Access to capital is important for businesses to advance to the next level and sometimes access to capital is vital for businesses to sustain through a rough time. Traditionally, when a business needed additional cash, a trip to the bank for a business loan would solve the problem. With the state of today's economy, businesses are looking for alternatives to the traditional business lending of the past.
A merchant or business cash advance is that alternative. A cash advance pays a business for its future credit card sales up front (before those sales are actually made). The amount of the advance is determined by the merchant's average monthly credit card sales. As future credit card sales occur, the cash advance is paid back with a small fixed percentage of the daily credit card sales. The merchant is charged a fee for the advance and that fee is included in the payback amount.
Benefits of a cash advance are:
o A-B credit is NOT required
o No collateral is needed
o No tax returns or financial statements are required
o Business owner is not personally liable for the cash advance amount
o No application fees or closing costs
o Business can receive cash in less than 10 days
Where a traditional lender requires a minimum credit score for the business owners, tax returns and financial statements, it is easy to understand why cash advances are widely accepted in the business community and steadily increasing in popularity.
Cash advances are a safe and reliable means to acquiring capital for your business. When acquiring additional capital, be sure to have a plan of action for the funds. Use wisely and let it help you advance your business to the next level.
Turn liabilities into assets, failures into opportunities, expenses into revenues and, losses into profits.
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