What Is A Business Cash Advance?
Business cash advances are a popular financing alternative to small business bank loans. With few requirements for approval, quick access to funds, and an easy, cash flow-friendly system of repayment, it's little wonder why so many business owners are choosing to finance their companies with a cash advance rather than a bank loan.
How it Works?
A Business Cash Advance does not work like a traditional business loan. In this financing arrangement, companies agree to sell their future revenues at a discount in exchange for up front funding. In return, the funded company offers a percentage of its future sales which are then used to pay back the cash advance.
Funding in Three Easy Steps:
Your application for a business cash advance is approved, and the agreed upon amount is deposited into your bank account.
A small percentage of your business' daily revenues are taken as repayment.
Once the cash advance has been repaid in full, whether it takes you 3 months or 3 years, you have no further obligation.
What is the Difference Between a Business Cash Advance and a Business Loan?
| Small Business Loan | Business Cash Advance |
|---|---|
| Hidden fees | No hidden or upfront fees |
| Long approval process | Quick and easy financing. Find out about approval within 24 hours. |
| Typically need good credit, collateral, and a strong sales history | Bad credit is okay. There is no need for collateral or a personal guarantee. |
| Strict repayment process | Flexible repayment based on sales volume |
You Do Not Need to Process Credit Cards
Though many business cash advance services are based in future credit card receipts, we are offering our cash advances based on the total gross revenues that are deposited into your business bank account. Repayment is then made via an ACH Bank Transfer. This means even businesses that do not accept credit cards can still receive a business.