subject: Business Cash Advance for Growing Business [print this page] Business Cash Advance for Growing Business
A business cash advance is a type of short-term loan made by people who want to start a business despite lack of capital. This kind of loan is small, reaching only up to 4-5 thousand dollars at most. Unlike most types of loans, a business cash advance is based on the credit card sales of a business instead of its credit history.
This type of loan is also considered as an unsecured loan because the business is not secured by any collateral. Moreover, it does not require any kind of credit check, as the loan depends on the average monthly credit card sales of the business. This means that this kind of loan is ideal for businesses that had suffered a bad credit history, as they would have trouble getting any other kind of loan.
It is easy to apply for a business cash advance. There is no need for tons of paperwork just to borrow money. While most conventional business cash advances require a lot of documentation, a business cash advance only needs a simple application form with basic information such as name, location and some receipts.
Aside from minimal requirements and ease of application, a business cash advance does not follow a fixed schedule of repayment; a business only pays while it is earning. Every time a customer uses a credit card to buy something, part of the charge from the credit card goes directly to the payment of the loan. This kind of repayment does not put too much pressure on small businesses, as it relies solely on the sales volume of the business.
The best advantage a business cash advance has over other loans is that a business can receive the cash almost instantly. Most cash advance loans need weeks before they can actually be used. However, a business cash advance can be obtained within 24 hours in some cases.
When filing for a business cash advance, it is important to review a lender's terms and conditions. Some agreements might require the borrower to pay back the loan within a short amount of time or pay additional penalty charges. If this should be the terms of payment, then the borrower should make sure the amount can be paid within the specified time period.
