It has never been so thrilling to be in business as it is today. The marketplace is teeming with new small businesses and entrepreneurs who are willing to take risks and follow their dreams. The “underdogs” are standing up to large corporations and are gaining incredible market share in their respective industries. While there are a number of ways in which one could finance their business, many are choosing business cash advance in California.
What Is a Business Cash Advance?
A business cash advance is a flexible loaning option which provides business owners a lump sum payment in exchange for a share of their future profits. Many small businesses and entrepreneurs choose business cash advance because they lack the credit or the collateral necessary to obtain loans by other means, such as through a financial institution.
Why Choose a Business Cash Advance?
Apart from often being easier to obtain than other forms of loans, there are other key advantages that come with a business cash advance:
1. Fast Application Process
Applying for a business cash advance can take just minutes to complete. They are straightforward, easy to understand, and require little investigation. This is a major difference from traditional loans when information such as your financial statements, credit card reports and business plans must be taken into account.
2. Quick Access to Money
Cash advances require significantly less paperwork than a traditional loan. Because of this, there is a much faster turnaround time in receiving you working capital loan. Most business cash advances are available within the same week you apply for the money. A traditional bank, however, can take weeks or even months depending on the circumstances.
3. Your Credit and Collateral Are Safe
A traditional business loan can affect you credit rating, but business cash advances typically will not. As this is not a loan but rather a sales transaction, most of these loans will not affect your credit report. Many business owners obtain cash advances to also avoid the potential of losing collateral, something which can sink a new business start-up.
4. High Approval Rating
Time and time again merchants are rejected by their financial institution for loans. After all, money’s tight and no one seems to be sure as to where the economy is going. Fortunately, companies offering business cash advances are willing to extend the financial means necessary to help strengthen our economy. These loans are provided based on how your business performs and positive cash flow.
5. Getting Paid When You Get Paid
Traditional loaning options rely heavily on payment schedules and penalties. A business cash advance, on the other hand, is a revenue-based collection system. This means that these companies often only get paid whenever you get paid. This makes business management and control of cash flow much easier for new or struggling businesses.
