Working your own business is always a challenging job and the challenge becomes even more difficult when there is a fund crisis. Every business, small or big provides experienced this situation where you need immediate financing to support your daily business routines and you are running short on money. So what are the solutions?
While effective working capital management can reduce the occurrence of such situations, it really is more than likely that businesses will have need for funds, may it be to meet the particular recurring expenses, buy capital tools or to expand the existing business.
Company owners has traditionally being dependent on business loans to meet such fund requirements, nevertheless , business loans are probably the worst type of financial obligations 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 collateral 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 methods for businesses. Cash advance providers would purchase a predetermined number of Visa and Learn card receipts from business owners and supply them with business cash advance in lieu of those receipts. The amount that the seller gets is not a loan and it is a cash loan paid against the Master and Visa for australia card receipts and is paid back through the merchant account. The borrower do not need to repay the amount personally.
Unsecured business cash advances are available and the business owner would not require any collateral to get an unsecured cash advance. Also the borrower is 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 loan. This is very much similar to Factoring, aside from the fact that in factoring business-to-business accounts 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 a business cash advance and only the bank card sales receipts are used for repayment of the business cash advance. All other payments received through cash, check or various other credit cards are left with the borrower. This ensures that he has sufficient money to run his business while the cash advance also gets repaid through the Visa and Master card receipts.
Not just is Business cash advance an easier financing solution from repayment perspective but additionally it is easier to get. The general criteria required to qualify for a business cash advance are usually:
The business must accept Visa or even Master Card as a mode associated with payment
The business must process a payment of $1500 or more within a month
The business should have been generally there for at least 2 years.
Credit card declaration and bank statements for three or more month for seasonal business plus 12 months statement for non-seasonal company should be available.
Most business cash advance companies would have similar conditions most likely with some modifications here and there. These makes it simple for any business that accepts obligations through credit cards to qualify for a business cash advance.
With this easy to get and straightforward to repay options, business cash advance continues to be the finance of choice for most business owners and especially small business owners are taking the maximum advantage of from business cash advance. If you are your own business owner, act now and get a business cash advance to take your business to the next level.