Despite Credit Problems, Some Businesses are Still Getting Funded Using Alternative Methods

If you’ve tried to get a business loan lately, you’re probably asking yourself "how the heck did they get a business loan? I’ve been trying for months." The answer to that is they did not get a business loan. They got a business cash advance instead.

A cash advance is similar in that you are given a lump sum of money that you are expected to pay back, but the similarities end there.

What makes a business cash advance different than a traditional loan?

On the surface they may seem pretty much the same but I assure you, they are different in many key ways. I’ll explain;

They have a 90% approval rate

Because they use your businesses sales potential rather than your credit history, it becomes much easier to qualify for this type of financing.

You get funded in about 7 days in most cases

This is true. While banks can take several weeks to process your information; cash providers have streamlined the process making the money available to you in a fraction of the time.

They do not require collateral

This is one of the reasons they have a 90% approval rate. Many businesses don’t qualify for loans because they do not have enough equity to put towards their collateral. Removing the need for collateral has literally opened the doors for thousands of small business owners who would otherwise never be able to get funded.

Flexible payment structure

A business cash advance provider is essentially purchasing your future credit card sales; it is set up so that you pay them back with your credit card sales. Your credit card processor is set up so that a small percentage of your daily credit card sales go toward paying back the cash advance.

The advantage to this is that because a percentage of your credit card sales are used; it creates a flexible payment amount that changes from day to day. You pay back less on days when sales are slow and more when sales pick up. Another advantage to this is there are never any late charges and no monthly bills to pay.

Qualifying for a business cash advance

Getting a cash advance is much easier than getting a bank loan. All you need to qualify is;

You need to have owned the business for at least 4 months and you must process an average of at least $2,500 a month in Visa/MasterCard sales.

If you have a recent bankruptcy, tax lien or are late on your rent/mortgage you may have some difficulty. However, they look at each case individually and it is definitely worth looking into.

If you are considering getting a bank loan, or if you already tried and have been turned down; I recommend using the following link to learn more about how a business cash advance can help you get the funding you need to grow your business.