If you are a small business owner, new or thriving, invariably at some time, there may be situations when you are in a bit of a cash crunch. These successful business can need more cash than they can borrow from a bank. Well, one of the no so well known financing strategies for businesses, small or large is a Business Cash Advance Loan. This can be on of the best strategies to quickly and if you qualify, almost instantly obtain a needed cash infusion for your growing business. A business cash advance loan uses an under used business asset, which is credit card receivables, to secure much needed business cash advances based on the merchant’s sales volume.
Business cash advance loans can vary anywhere from $5,000 to $300,000. Small or larger businesses can benefit from converting their future cash flow into immediate working capital in a form of hard cold cash. The most likely businesses to benefit from business cash advance loans are: bars and restaurants, service orientated businesses and retail stores.
Credit Card Factoring
Business cash advance loans are also often referred to as “credit card factoring”. There are also small businesses in need of a cash infusion that have relied upon a financing strategy known as “receivables factoring”, which allows the small business to sell their future receivables, but at a discount. Most of these small businesses however are unable to document or predict their receivables to qualify for commercial cash advance financing. Other small businesses (such as the previously mentioned bars and restaurants, service or retail stores) do not have these types of receivables to use as a commercial financing tool.
But what these businesses who do not qualify for a ‘receivables factoring’ loan can provide is their sales volume, as well as their documented credit card sales. It’s the level of sales and income along with the credit card sales that becomes an asset to the business. Business cash advances, as much as $300,000 can be received, based on the merchant’s sales volume history and its future credit card sales.
Before you use this strategy, you as a small businesses owner should know there may be a few recurring and potential problems that you will need to know and expect.
Here are some of the pitfalls that you as a small business owner can expect and thus should try to avoid when receiving a business cash advance loan.
> Up-front fees – Try to avoid any up-front fees these loan companies may charge
> Closing costs – Try to avoid closing costs as well
> Financial Statements – Your financial statements should not be required
> Collateral – Any type of collateral should not be required
> Should be no Fixed term to pay off the business cash advance loan
> Should be no Fixed payments to pay off the business cash advance loan
> High credit scores (680 to 700+) Ideal credit score to qualify should be 500 or better
> 2-3 years + in business required to qualify, some just need 6 month to 1 year in business
> 1 to 2 years of documented credit card sales of at least $10,000 to $25,000 per month or more required. Some just require 6 months at $4,000 or more
> Maximum business cash advance loan of $10,000 to $50,000 – Find lenders who can loan $250,000 to $300,000
Fill out the simple application form and instantly get matched with up to 5 business cash advance providers for free.