There are a variety of alternatives to bank loans, with business cash advances offering perhaps the most practical, fast, and easy option. Every owner finds a time when they need some extra cash to maintain or grow their business. Here we take a look at six reasons a business cash advance is better than a bank loan.
No Collateral Required
Many small business owners lack the collateral to qualify for a bank loan, while others are extremely hesitant to leverage their assets to obtain funding. A business cash advance does not have that requirement, making it easier to qualify while providing the peace of mind of not putting up everything you own to potentially grow your business.
No Application Fees
When you’re seeking out funding, having to shell out hundreds of dollars to apply for a loan can be a tough pill to swallow. This can get quite expensive with no guarantee that you’ll receive the funding you need. With no application fees, a business cash advance offers an easy, cost-free alternative when requesting funding.
Competitive Rates Based On Credit Scores
Being approved for a business cash advance does not require you to have good credit. Your rates will actually be lower if you do. There can be very few places to turn to acquire funding for small business owners who have poor credit. A business cash advance offers these owners the opportunity to maintain and grow despite their credit history.
Typically Approved Within 48 Hours
One of the major drawbacks of bank loans is the lengthy approval process. A bank loan can take weeks or even months to be approved, whereas a business cash advance can be signed off on within 48 hours. When you need money fast, a bank loan is not an option. A BCA offers owners a way to make repairs, restore operations and seize opportunities in a timely fashion.
Payment Terms Can Range From 3-12 Months
Another drawback of a bank loan is the lengthy repayment period. What business owner wants a debt hanging over their heads for years? A business cash advance offers much shorter repayment terms, saving owners from paying interest rates over the long term. Repayment terms have a significant impact on the overall cost of obtaining funding.
Payment Amounts Rise And Fall With Daily Card Sales
Payments on a business cash advance are made based on a percentage of your daily credit card sales. This means if you’re having a tough week or month, your profits won’t be totally wiped away by making a loan payment. This gives owners flexibility and the peace of mind that they can still remain profitable even while they repay their advance.
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