Operating your own business is always a difficult job and the challenge becomes even more complicated when there is a fund crisis. Every single business, small or big offers experienced this situation where you need immediate financing to support your daily business activities and you are running short on money. So what are the solutions?
While effective working capital management can reduce the particular occurrence of such situations, it is more than likely that businesses will have need for funds, may it be to meet the recurring expenses, buy capital tools or to expand the existing business.
Business people has traditionally being dependent on loans to meet such fund requirements, nevertheless , business loans are probably the worst type of liabilities that any entrepreneur would like to make. They would require a collateral, a high rate of interest and fixed payment terms – business owners often risk losing their assets that they put as guarantee in case they fail to make timely payments. With all these issues making business loans a negative option for entrepreneurs sets them on a hunt for a better finance choice. Business cash advance is just that!
Company cash advance is one of the most popular financing techniques for businesses. Cash advance providers would purchase a predetermined number of Visa and Grasp card receipts from business owners and offer them with business cash advance in lieu of those receipts. The amount that the seller receives is not a loan and it is a cash advance paid against the Master and Visa for australia card receipts and is paid back through the merchant account. The borrower need not repay the amount personally.
Unsecured company cash advances are available and the business owner would not require any collateral to get a cash advance. Also the borrower is just not personally liable to repay the business money advance. The business owner can sell their future credit card receipts at a discounted rate to avail a business cash advance. This is very much similar to Factoring, aside from the fact that in factoring business-to-business bills are discounted where as in this case your credit card receivables are factored.
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You will find no fixed payment schedules for the business cash advance and only the credit card sales receipts are used for repayment of a business cash advance. All other payments received through cash, check or additional credit cards are left with the debtor. This ensures that he has sufficient funds to run his business while the cash advance also gets repaid through the Visa and Master card receipts.
Not only is Business cash advance an easier fund solution from repayment perspective but additionally it is easier to get. The general requirements required to qualify for a business cash advance are:
The business must accept Visa or Master Card as a mode of payment
The business must process a payment of $1500 or more in the month
The business should have been presently there for at least 2 years.
Credit card declaration and bank statements for three or more month for seasonal business and 12 months statement for non-seasonal company should be available.
Most business cash advance companies would have similar conditions probably with some modifications here and there. These makes it simple for any business that accepts payments through credit cards to qualify for a business cash advance.
With this easy to get and easy to repay options, business cash advance continues to be the finance of choice for most business people and especially small business owners are taking the maximum advantage of from business cash advance. If you are a small business owner, act now and get a business cash loan to take your business to the next level.