If you've got a business, then you are in charge of finding the money to fund it and raise capital. And while there are a lot of good stand-bys, such as the traditional business loan, finding investors, or even getting a start-up loan funded by the government, there is also a new way you can help fund your business: by using a business cash advance. If you've never heard of one, you should know that it's an excellent funding opportunity, and here are the details!
The Choice Of Experts
If you choose to have a meeting with your financial experts, you will discover that there are numerous ways to raise capital for your business, including finding an investor, getting a traditional business loan, or getting funding from the government for your start-up. But the newest and most exciting option they will offer you is a business cash advance.
The reason why this option is so popular and suitable for a lot of different businesses is that it has reasonably few requirements and it can be offered on short notice. It's also extremely flexible, because it all depends on how much income you make from credit card and debit card sales. This makes it perfect for a variety of businesses that operate with cards, such as restaurants and coffee shops, hairdressers, and other places where people tend to pay with cards.
The Business Cash Advance
You may be interested in getting a merchant cash advance, so let's look at the advantages and disadvantages of this type of financing before you make a final decision on whether this option is suitable for you and your business or if you're better off opting for something else.
Advantages Of Business Cash Advances
You can get them on short notice
It's good to have a business cash advance on hand as an option because you may be in a situation where you need money urgently. In that case, not a lot of financing solutions are available, but a business cash advance can certainly work for you as an emergency capital option. So, the next time you need an advance for a limited amount of time, you can get a cash advance and then work out a different, more permanent funding option later.
They have built-in affordability
The biggest advantage of a business cash advance is the built-in affordability feature. You see, repayment is not made in regular, fixed instalments, like you would with a traditional loan. Instead, there is a fixed percentage from your income that is taken automatically from your account. This is only from the income you make from credit card and debit card transactions.
You don't need good credit
The other thing to consider is that you do not even need good credit in order to get a business cash advance. In fact, your credit won't factor into the eligibility requirements at all, because this isn't an unsecured loan. Instead, you will be approved or rejected based on the income you make from credit cards and debit cards.
You don't risk losing an asset
Because this type of financing is not "secured" in any traditional sense, it means you do not have to provide an asset to use as collateral in order to secure the money. This way, you don't risk ever losing your asset in a case where you are going through financial difficulties and cannot afford to pay.
Disadvantages Of Business Cash Advances
The first and most basic requirement of a business cash advance is for your business to operate with credit cards and debit cards. So, if your business fits that requirement, you may be eligible. You must also meet a minimum amount made from income from cards. This amount will be used to determine how much money you can get as an advance and your general affordability.
In conclusion, if your business requires capital, then why not get a business cash advance? It's the newest and most convenient way to inject some cash into your business, with no requirement for good credit or collateral. The eligibility criteria is not strict at all, and you only need to operate with credit cards and debit cards and make a certain amount of income from card operations in order to be able to get your advance.