We’ve all heard the old adage “You have to spend money to make money”? It is not always true, but if your business is experiencing a temporary decrease in cash flow it may make the difference between closing your business and being successful. Frequently, a small business will have inconsistencies in their cash flow. Maybe your business is seasonal, like a landscaping company, or maybe your business experiences the ebb and flow of the tourism market. Either way, there will be times when your cash flow is great and times when it is not so great. You still have a lot of the same expenses, such as overhead and payroll, even when you do not have the cash flow to cover it. Maybe you had a piece of crucial equipment break down and you don’t have the cash to repair or replace it. In all of these scenarios a Business cash Advance can help your business through those rough times and keep it growing.

Business cash advances have become an increasingly popular option in small business lending. Whether you’re looking for cash flow, to make improvements or expand to a second location, small business owners have grown to realize the many benefits of a business cash advance. The process to be approved for a traditional bank loan is only getting more difficult. Many businesses know they need additional funding, but aren’t sure how to go about obtaining it. Additionally, some companies are not aware that a business cash advance could be available to them or when to use one. Here are a few examples of when a business cash advance is your best option.

Emergencies

In any small business, there will be times when you need money in a pinch. For example, a necessary piece of equipment breaks down and it needs to be replaced. Most small businesses cannot afford to close the doors. With a business cash advance you can receive your funds in a far shorter time than with a bank loan, thus eliminating costly downtime. In addition, if you’ve had a slow month and you are having difficulty making payroll, a business cash advance is the only way to get cash fast enough to cover it.

Smaller Needs

Most banks are very hesitant to offer loans for small amounts. In fact, anything under $200,000 can be very difficult to be approved for. With a business cash advance, the threshold is much lower. This allows you to make small repairs or improvements without having to borrow more than you need. This prevents you from going into debt when it’s not necessary.

Quick And Easy Repayment

Traditional loans can carry extremely long payment terms that can last 10 to 20 years. These types of loans can carry heavy interest rates that compound year to year. Sometimes you do have the option to pay them off early, however, in most cases you will incur a large fee. With a business cash advance the repayment terms are significantly shorter. A reputable business cash advance company wants to do what’s in the best interest of the business owner.

Lack Of Collateral

One major obstacle a small business owner may come across when they apply for a bank loan is having a lack of collateral. Owners who are just starting out are unlikely to have the collateral necessary to obtain a traditional loan. An unsecured loan is a risk that most banks are not willing to take. With a business cash advance, approval is based upon monthly credit card sales and other factors that make it unnecessary to provide collateral.

Poor Credit

Since credit is not as heavily weighted in the approval process for a business cash advance as it is for a bank loan, those that do not have great credit still have an excellent opportunity to receive funding. Credit scores can go south for a myriad of reasons and it does not always mean that a business had been irresponsible with their money. Business cash advances take into account that fact and in most cases are able to work with owners that have low credit scores.

Time Sensitive Opportunities

As a small business owner, you never know when a great opportunity is going to present itself. Let’s say a prime location becomes available and it would be the perfect place to set up a second location. Having to take the time to wait on approval from a bank can severely damage your chances of obtaining the property. Since a business cash advance is much faster and easier to be approved for, this makes it a great option to investigate when you’re thinking of expanding your business.

With over 12 years in the business, Quikstone Capital Solutions has proven to be a trustworthy and knowledgeable lender specializing in small business funding. Over 60% of our clients are renewals looking to continuously grow their business. Whether you need cash to cover unexpected costs or if you’re looking to make long overdue improvements, Quikstone Capital can help.