Whether you are just starting a new business or your business is established and growing chances are that extra funding could be a real help at times. Traditionally business owners have counted on small business loans to supply capital needed for routine inventory/supplies, new equipment, and in some cases, even for the daily cost of operating the business. But times have changed and the economic environment is completely different. Banks seem to constantly be increasing the stipulations concerning loan approvals. Not only are the business owners subjected to strict requirements for approval of extensive applications that seem to want to know every detail of the business and the owner alike, they are often charged lofty fees only to be denied the cash their business needs. If a business owner is fortunate enough to be approved for the loan collateral is usually required. Approval is often ultimately based on the credit score of the business. And while this may work out for some businesses the fact is that many businesses in need of cash do not have what is qualified as a good credit history. The reality is that the approval of the loan itself could provide funding needed to enable the business to thrive, thus resulting in the establishment of good credit. Now let us discuss another option for business owners in need of business capital. Nowadays businesses can get cash advances without all the hassle involved in seeking a loan approval. These business cash advances are based on future credit card transactions. The funding is unsecured, no collateral needed. Amounts vary from less than $5000 up to $250,000, and there is greater than 90% approval rate. Other advantages of a cash advance over a loan is the fast approval (often within 24 hours), and no startup costs or closing fees. The simplicity of the concept is fantastic. The business gets the cash it needs when it needs it, and the advance is based on future credit card sales. As credit card transactions accumulate the business pays back a small fixed percentage of the credit card receipts. In other words, the business pays back the money as it makes sales; the payment plan is not fixed. Because an advance is based on future sales even businesses with bad credit qualify for the business cash advances. It’s not difficult to see that a cash advance is an excellent for any business in need of a cash injection.
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