subject: Line Of Credit: Funding For Your Small Business [print this page] If you are trying to attain a line of credit for your business you have more than likely determined that it is tough to acquire and it is accompanied by a number of pitfalls. Every business needs a line of credit but they do not care for the hassle and headaches that undoubtedly come with conventional lines of credit. A business cash advance is a practical alternative that delivers you the cash you are in need of without being burdensome.
When applying for a line of credit you will be expected to pay application fees and prepare years of financial files to even kick off the application process. You must to compile a business plan, several years of tax documents, financial documents, evidence of property you will put up for collateral, and have shiny credit for any bank to even give consideration to your application. Once you have spent lengthy amounts of time gathering and preparing the records, you will have to wait, frequently weeks, to to learn if you have been approved and then wait around to actually be given the credit you need.
Applying for a business cash advance is extremely different. You will not need to pay an application fee or prepare extensive amounts of paperwork and records. You do not have to pledge any collateral and you can qualify if you have bad or less than perfect credit. A high percentage of applications are pre-approved in one or two days and you can quickly obtain your funds.
Unlike traditional loans and lines of credit, business cash advances are not reported on your credit. This gives you the ability to to keep your future funding opportunities available. When funding is evidenced on your credit, future lenders most often want to know about about the loan or wonder why you are trying to acquire more money again. The business cash advance helps you to have some privacy and remove future financing concerns by other lenders.
Traditional lines of credit demand repayment in the form of significant, non-flexible, monthly payments. These type of payments can cause you to end up right back in a stressful situation. If you do not make expected profits in a month, you can end up in a stressful situation without enough cash flow or proper funding to repay your credit. A business cash advance allows repayment that is based on your credit card sales. A small fixed percentage of credit card sales is deducted and put toward repayment of the advance so you only pay off the advance as you actually make money.
Banks usually inquire about what you need a line of credit for specifically. Business cash advances let you to take care of any and all of your business needs. You have the flexibility to use your advance on any part of your business and as many parts of your business as you want. You can pay vendors and employees, fund advertising, acquire equipment, or allocate your cash in any other way you see fit.
With such a flexible option available you can attain the funds you need, when you need it. You do not have to be rejected by the bank for a line of credit because of a short business history, unhealthy credit or inability to meet their unsparing requirements. You can decide to take advantage of the business cash advance alternative and take care of your business needs.
