7 Reasons a Cash Advance is better than a Bank Loan for your Business
Traditionally, getting cash for your business has been
anything but quick and painless. Up until recently, there have been two ways
to get small business funding:
A
loan from a bank
Taking
out a business credit card or extending your businesses line of credit
While these options are certainly viable in some situations
- not all business owners have a stellar credit history, a long time in
business or even have the time to wait 90 or more days for a business loan to
go through. Fortunately nowadays, small business owners have a choice when it
comes to funding for their business – and that choice is a merchant cash
advance.
Here are seven reasons that a cash advance is better for you
and your business than taking out a loan from the bank.
With a cash advance:
Your credit history doesn’t play a major factor in your
approval
If you’re trying to get qualified for a business loan, you
will likely have to have a solid credit history, both personally and for your
business. With a business advance, even if you have bankruptcy, foreclosure or
a tax lien in your history, you can qualify for a cash advance.
You get your cash faster
Getting a loan for your business can take as long as 30 days
or more. Merchant cash advances have a quick approval and deposit of your funds
– generally within 5 business days.
Your length of time in business won’t disqualify you from
a cash advance
Many bank-based business loans require that your company has
been in business for 2-3 years; merchant cash advances are much more new
business friendly.
There are no restrictions on how you use your cash
advance
Sometimes business loans are tied to a specific purpose,
such as financing equipment of funding inventory. With a merchant cash advance
you have a lot of freedom with what you can do with the case – pay off debt, make
payroll, improve your working capital and cash flow – use of funds is virtually
limitless.
You qualify for more financing as your advance is paid
off
As your cash advance is paid off you can receive more funding
if needed – try getting a bank to give you more money upon request while in the
midst of paying off your loan!
There is no collateral needed
Using a cash advance you don’t need to put a lien on your home,
business, company vehicles or anything else – there is no collateral needed
with this type of business funding.
You don’t have to make a personal guarantee
Unlike many bank loans, you are not personally liable for
repayment of the cash advance.
Regardless of your credit history or your business model, a
business cash advance can be a valuable asset for your businesses funding.
Take 30 seconds and fill out our qualification form. See how much of a cash advance
you qualify for today.