Business Cash Advance: The Best Working Capital Solution

Financing is an important and perhaps the most crucial component of business

. No fund or an insufficient fund is equivalent to a poor or almost no revenue. And more than often small business ventures are troubled by a paucity of working capital. Such financial crisis many a times spell the doom for an otherwise thriving business.

What is the solution to such monetary issues? There are a couple of them.

1.A high risk business loan: This is the traditional process of acquiring working capital for your business.

2.The new age business cash advance: Such an arrangement is based on future credit card sales. Usually you get 1.5 times of your monthly credit card sales.

The second option is becoming increasingly popular amongst small business owners. There are genuine reasons for it. it is simple to get the approval and comes with other added benefits. The following comparative study should make clear such preference and favoritism.

Business cash advance as against high risk business loan:

Minimum requirements: When it is a business cash advance the requirements for filing an application is minimum. Unlike traditional business loans, here you do not need to submit your financial statements or your tax returns, not even any personal guarantee. All that a business cash advance service provider asks is a documentation of the last three months bank statements along with the last fourth months credit card processing statements.

Risk no factor: Even if your business is leveled as one that endures high volume of risks you can avail a business cash advance. With traditional loans the case is different. High risk businesses hardly get a nod of approval form banks and other lending institutions. Why so? This is because the banks offer loans only after a thorough evaluation of the repaying capabilities of a business. High risk ventures on most occasions fail to past this test and hence get rejected.

No interest at all, forget high interest: Very much unlike a typical business loam, when you opt for a business cash advance you need not pay any stipulated interest. Isnt this incredible? You only pay a part of your daily credit card sale.

Flexible repayment: To add to the list of benefits, there is no fixed repayment schedule. Then how do you pay back? The lender here takes a small percentage of your daily credit card sales. Hence you pay back according to what you earn. And when you are not earning enough, you need not pay.

Now, it is time to have a look at the eligibility criterions. What are those?

Obviously you business should be making use of credit cards be it master card or Visa card.

Your monthly credit card as well as debit card sale should be not less than $ 5,000.

Your business should be a year old at the least

There are a plethora of business cash advance service providers in USA. In order to get the most suitable and convenient solutions count on the most authentic and most trustworthy service provider.

by: jain robert

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