subject: Business Cash Advance - Funding Your Business With Ease [print this page] A Business Cash Advance is an unsecured advance of cash on moneys a business will realize in the future, commonly offered by private financial institutions. Unlike the typical loan, the funding is secured against future credit card sales and involves a much less paperwork than a conventional small business loan attained from the bank. Ideal for businesses that don't have many years of work history on their resumes, a merchant account loan provides needed funds fast.
Banks evaluate five characteristics when figuring out whether to provide a business loan. These characteristics, called "the five Cs," are as follows: character, capacity, collateral, capital and conditions. As conventional loans are only given to those merchants with flawless credit and a proven record, it is understandable that many merchants simply do not pass the test.
The qualifications for a business cash advance are less stringent, and payment lengths are likewise more flexible. Repayment is pegged directly to the credit card sales brought in on a daily basis. Nevertheless, the entrepreneur should use some patience when looking for this method of working capital.
While a reliable business cash advance agent will give the much needed cash at a low price, some will try to charge exorbitant interest, demand up front costs and have unreasonable default terms. Reviewing the fine print is necessary.
Even though many business advisers will suggest that going after financing from family and friends, credit cards and personal savings are better options, they aren't always realistic. In addition, it can take time to get such funds, and it really is best not to do business with family and friends. Turn around time on this type of working capital is most commonly less than a a few business days, and with no set payment terms, a business cash advance is a excellent way to get funds quickly without involving additional persons.
by: Daniel Samoohi
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