Companies that acquire most of their accounts receivable or invoice receipts from their customers' credit or debit card charges can take advantage of business cash advances to get ready cash. It is an efficient, safe, and simple way to secure funds needed for their business expenses. There are many local and online services around that will provide small businesses with cash against the value of their future credit or debit card sales. Basically, these services are buying a portion of a company's future business receipts. This allows businesses to secure the funds they need without having to repay the loans until they process credit call sales. And a cash advance can usually be approved quickly, making the funds available as needed.
Unlike regular loan services, there are few requirements for this type of cash advance, so more businesses are eligible for them. Most services that offer business cash advances require a company to have been in business for at least a year and the company must provide proof of past credit and debit card receipts. This is usually achieved simply by producing a few months of credit card processing statements.
The cash advance service may require that a company does a minimum amount of business each month via credit or debit card, but this will be negotiated based upon the amount of the loan requested. There are no closing costs for this type of loan, nor are there hidden fees that add to the cost of such a financing arrangement. There is no interest rate to negotiate, and there is also no collateral required to secure the loan because future business covers the repayment.
And customers for this service are not restricted in how they use the borrowed funds. If they need to buy more inventory or equipment, grant an employee a bonus, or pay off another high-interest loan, they can. They can even use the funds to expand their business, adding a larger dining room to a restaurant or securing a second location for their dry cleaning service. Emergencies such as broken water pipes or smoke damage from a fire can be handled by taking advantage of business cash advances to get quick money. And these funds are perfect to use for advertising, thereby bringing in even more customers.
Business cash advances are particularly advantageous for the retail industry because, once the loan is set up, everything is handled automatically from the calculation of the repayment to the disbursement of the funds to the lender. There are no statements to keep track of and no checks to write to repay the loan. Instead, as a business's customers make purchases using their credit cards or debit cards, a small agreed-upon percentage of each payment is automatically deducted and routed appropriately to the lender. The loan is repaid quickly and effortlessly, solidifying a future relationship with the cash advance service, thereby opening the way to future advances.
Business owners can renew these cash advance loans on regular schedules as needed, as long as their credit or debit card sales continue. These types of cash advances provide a great way for a business to create a credit history, although most advance services will not work with a brand new company. Established credit or debit card business is the key to getting this type of unsecured loan. It is a great alternative to corporate credit, benefiting business owners, their customers as well as the advance lending industry.
Corporate Credit Concepts specializes in Business Cash Advances. For more information about Business Cash Advances and how it might benefit your business, please CLICK HERE for a free phone consultation.