As a small business owner it is important to become familiar with the different types of funding available to you. Business cash advances have become an increasingly popular option for owners looking to grow their business. Here we answer three of the most common questions about business cash advances.
How Are Business Cash Advances Different Than Bank Loans?
A business cash advance is much different from a bank loan. They are much easier to qualify for and have a far faster turnaround. Business cash advance lenders are able to offer a large sum of money as long as your business has a strong sales history. Rather than paying back a lump sum or making large monthly payments, repayment is made with a percentage of your daily credit card sales. Since the approval process is largely dependent on monthly sales, those with less than stellar credit are still able to qualify. Unlike bank loans, business cash advances can be taken out for smaller expenses, which allows business owners not go into more debt than they need. They also have a faster repayment schedule than bank loans, helping you avoid exorbitant interest costs. Being able to make equipment purchases and renovations without having to worry about paying it back for the next 20 years provides owners the peace of mind that what they make in the future will be theirs.
What Can Business Cash Advances Be Used For?
Perhaps the best part about business cash advances is that they can be used for anything. When applying for a bank loan, what you plan to use the money for can significantly influence your approval. Business cash advance lenders recognize that there’s a good chance you know what your business needs and there may be many separate things you need to use your advance on. Making renovations to your restaurant or storefront is a great way to use an advance and can dramatically increase your profits in the long run. Being able to purchase newer and more energy efficient equipment can also be a boost to the bottom line. If you happen to hit a slow period in the life of your business, a business cash advance is fast enough to help you cover expenses such as utility bills, rent and even payroll. This flexibility makes business cash advances far more versatile than bank loans.
What Should You Look For In A Lender?
When looking into a business cash advance lender, you’ll want to seek out a lender that is not only reputable, but also has experience lending within your industry. Lenders that are familiar with your business will be able to provide you with valuable insights that may help you to use your funding to your advantage. They will also be able to let you know what to expect and ensure you don’t have any issues repaying. Quikstone Capital Solutions has history working with several business models including restaurants, specialty retail, bakeries and many more. Consider a business cash advance to help make your company goals a reality.
