The Advantages And Disadvantages Of Business Cash Advance

How to arrange for working capital for your business is a major decision

. You have two options to decide form:

Business cash advance- It is the recent and most ingenious alternative to traditional funding options. It is easy, fast and therefore very convenient.

Traditional business loan- This is conventional business loan that banks or other financial institutions offers on fixed terms and conditions.

And if you have a fair enough knowledge of all the available options at hand, it aids the decision making process. Business cash advance is the newest and supposedly the most convenient funding solution for your business. If we consider the recent business trends, this unsecured way of accumulating working capital has become really popular as far as small business is concerned.

Let us have a look at the pros and cons of this newest funding solution.

Advantages of business cash advance:

No restrictions; use business cash advance for anything and everything related to your business: Unlike conventional business loans there are no restrictions, no regulations as to how a business owner is to make use of the business advance cash. It can be used for purchasing new equipments, to handle the recurring payments, to expand a business by diversifying or simply by multiplying branches. Even if you simply want to raise the working capital business cash advance comes handy.

Business cash advance even if you have a bad credit: Wondering whether you can opt for a business cash advance at all? You have a bad credit record? No issues at all. You can now arrange for the required working capital against your future credit card transactions. Such a mechanism helps you to bail your business out of financial crunch.

No fixed payment needed: With business cash advance, you do not have any fixed repayment policy. The arrangement is flexible only to give you all the benefits. A business cash lender understands the intricacies and complexities of business, the probable ups and downs. Hence they have accommodated this flexible payment option. You pay when you earn, when you dont the lender can wait.

Disadvantages of business cash advance:

No credit card, no cash advance: So that you can avail business cash advance, your business should accept credit cards. The advance is provided in lieu of the future credit card transactions. Even repayment also takes place through credit card. Advances are repaid as cash advance providers deduct a small percentage from a business daily credit card sales.

However for those businesses that is yet to have the credit card facility but need immediate working capital, the lender can set them up with a credit card service provider.

Minimum credit level: You have to have minimum amount of business in order to be eligible for a business cash advance. What is the minimum amount? Your monthly credit card sale amount should be at the least $3,500 per month.

The elaborate discussion above should help you to decide whether or not opting for business cash advance should prove fruitful for your business.

by: Jhonny Elderson

POST COMMENT

Small Business Edi Services And Solutions Motivations To Refresh Your Domain Contract And Advantages For Your Business Web 2.0 Technologies For Online Businesses Social Media Business Plan - Reaching Your Target Market The Notable Significance Of Small Business Coaching 5 Top Web Business Facts Starting A Catering Business Hosted Pbx Services- Lets Your Business Outshine Other And Is Easy On Pocket What Is A Green Business? The Importance Of Business Shoes "how To Start A Business With No Money" Sap Business One In Multinational Corporation Or Spoke And Hub Approach Green Business Ideas For Existing Businesses