6 Ways A Business Cash Advance Is Better Than A Bank Loan

Posted by Karen Erdelac on Nov 6, 2019

6 Ways A Business Cash Advance Is Better Than A Bank LoanFor those with poor credit, no collateral and a short time frame for receiving funding, bank loans are simply not an option. Thankfully, a business cash advance can give you the capital you need, fast.

No Collateral Required

Most small business owners have very little collateral, especially when they’re first starting out. This can make it very difficult to qualify for a bank loan. It can also be nerve wracking when you’re leveraging everything you have simply to get financial assistance. For those that lack collateral or are simply too nervous to leverage their current assets, a business cash advance is the way to go.

No Application Fees

Nobody likes application fees. The prospect of paying to apply for capital that you may not even receive is a tough pill to swallow for bootstrapped small business owners. With a business cash advance, there are no application fees. This allows small business owners to apply for funding without having to come up with out of pocket money simply for the chance to be approved.

Competitive Rates Based On Credit Scores

While your credit score does not play a major role in whether or not you’ll be approved for a business cash advance, having good credit can reduce your interest rates. It can be extremely difficult for those with average to poor credit to be approved for a bank loan, making a business cash advance an excellent alternative.

Typically Approved Within 48 Hours

Bank loans can take weeks and even months to be approved. In most cases, small business owners do not have the luxury of waiting. When it comes to unexpected expenses and emergency situations, a business cash advance can give you the capital you need in a timely fashion.

Payment Terms Can Range From 3-12 Months

Spending years paying off a bank loan can be like having a black cloud hovering over your business.  A business cash advance often comes with terms that last for less than a year. This means you can get the funding you need without sacrificing your long-term profits.

Payment Amounts Rise And Fall With Daily Credit Card Sales

Some days are better than others and a business cash advance takes that into account.  If you have a slow day, week or month, you don’t have to worry about having everything you made go directly toward paying off a loan. It also makes budgeting for your payments much easier as they will be based upon a percentage of your credit card sales.

We fund a minimum of $5,000 up to a maximum of $250,000, depending upon your average monthly sales and the strength of your business. Your business may qualify for more than you think. Click here to find out.

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Topics: Business Cash Advance