Small
business owners such as most retail stores or restaurants usually opt
in for a business cash advances since they are not eligible for a
traditional business loan. Especially when repaying traditional bank
loans can destroy a the profits of the business. Thats where the
alternative financing comes to play.
Advantages of alternative financing:
· Business Cash Advances do not have to be repaid if your company were to have a slow day, month, or season.
· Business assets nor collateral have to be pledged to obtain a business cash advance.
· Non credit based. Bruised credit OK.
· Will not tie up your credit lines nor appear on your credit report.
· More cash flow available since you do not have to make debt payments.
Disadvantages of traditional loans or bank loans:
· Fixed monthly payments. Slow month? Doesn't matter, you need to make your payments.
· Will not qualify with bad credit
· Healthy tax returns required
· Appears on your credit report and puts a bottleneck on your overall line of credit
· Late on a payment? Your credit will likely get bruised for 7 years.
Business Cash Advance, a Good Alternative:
A
business cash advance is not a loan. It's a cash advance strictly based
on your credit card receivables. It's the same idea as factoring,
however with credit cards. The organization offering the business cash
advance provides funding based on the average amount of credit card
sales produced over a months time and generally will advance a small
business up to 135% of the monthly credit card processing volume.
Repayment is simple where a specified % of the merchants daily batches
are deducted daily until repayment of the advance.
There are
several business cash advance companies out there. Companies like 1st
Merchant Funding usually provides this type of cash advance as working
capital for most business owners that accept credit cards already at
their location.
More information can be found by referencing www.1stMerchantFunding.com or by calling 866-710-2265
