Business Cash Advance
Starting a business and ensuring it doesn’t go under can be a tall order. There are many challenges of running a business, from lack of necessary capital , to bureaucracy and the red tape, let’s not forget how difficult it can be to get loans from banks. Business lending is now moving into a new direction. Business owners are looking for alternative funding to grow their brands. One of the alternatives is a business or merchant cash advances. When merchant cash advances were initially rolled out, the payments were structured as a lump sum in exchange for which the lender would get a percentage of future debit and credit card sales until the amount has been covered. Today, these advances are characterized by short terms of payment and small regular payments. Short term of payments typically take under 24 months and small regular payments are generally paid each business day. This is quite different from the longer payments terms and larger monthly payments that are common with traditional bank loans.
Merchant cash advance lending is typically fast, with the application process taking as little as a week or even less. Merchant cash advances are available as either flexible or fixed repayment options all of which are designed to maintain cash flow in your business at all times. Banks are now trying to catch up with their counterparts by employing the same tactics as those organizations by offering business cash advances and alternative lending. Some banks have even acquired some of these cash advance companies to incorporate their sales techniques and add their products to the banks’ portfolio.
The government has joined the business financing sector with the establishment of the Small Businesses Lending Fund (SBLF). The lending funds are designed to provide community banks and development loan funds with capital to encourage small business lending. SBLF is bringing together small businesses and mainstream banks. This results in the creation of jobs and the promotion of economic development and growth across the nation. Through the program, the treasury has invested over 4 billion dollars in 332 institutions.
Business cash advances are an easy, convenient and fast way of getting capital for your business without the hustle of traditional loans and with repayment options that fit your business. Cash advance payment method is convenient for the business. Most companies offering cash advance services will not scrutinize your credit worthiness making it an option for small businesses to acquire loans.