Reasons Why Business Cash Advances Are Better Than Traditional Bank Loans
Most businesses face a cash crunch at one point or another. For small and medium sized companies, business cash advances can help meet their immediate needs of a cash flow. Although banks offer a variety of loans, businesses that are still developing have a tough time procuring funding from banks and other financial institutions. Business cash advances in some ways offer more benefits than traditional bank loans. To begin with, a business cash advance is much faster to obtain than a traditional bank loan with less paperwork involved. The waiting process is less than a week while approvals can be obtained in 2 days.
Lenders of business cash advances understand the needs of small business owners when it comes to emergency funds, which is why you don’t need to wait for long for them to hand you the money. Repayments are made to the lender through credit card processing, based on your daily credit card sales. The lender will take an agreed percentage from your credit card sales every day until the business cash advance is repaid. There is no need for collaterals or personal guarantees. The only requirement is that you have been in business for at least six months and have minimum monthly credit card sales of around $4000. The amount of advance approved by the lender is based on your monthly credit card sales. This means there is no risk of becoming a defaulter.
Whether you are a restaurateur, dental clinic owner, or any other small or medium business owner, you can avail of business cash advances. Besides, you do not need an impeccable credit record to avail of this type of cash advance. All that is required is a one year lease from your landlord and records of your credit card transactions to get a cash advance in less than a week.
This entry was posted on Saturday, May 28th, 2011 at 9:12 am and is filed under Loans. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.