Business Cash Advances - Quick and Easy

by VENDIREX on 10/23/2015 - 01:14 pm |

Tag: Business Loans

Providing a fast and simple alternative to lengthy loan applications with stringent requirements, business cash advances are growing in popularity. Though many new service providers are cropping up, it’s important to perform your due diligence when it comes to choosing the one to work with.

Who provides cash advances? From large merchants and independent firms created for just this niche, to recently-interested traditional banks and leasing companies - it seems everyone is jumping on the bandwagon. All the more reason to sharpen your research skills and listen to your instincts, before committing to one particular vendor.

Reasons for a Business Cash Advance

Though it is unrealistic to think any list of needs would be finite, the following are some of the more typical reasons these loans are highly sought after:

  • Handling a tax deadline balance

  • Purchasing new equipment

  • Adding inventory to fill increasing orders

  • Adding cash flow for discount purchases

  • Marketing campaigns to boost sales

What Makes a Good Provider?

Keep in mind that you will be in close and frequent touch with any firm you choose to supply your cash advance, so take this decision seriously. It is important to select a provider with attributes (and features) that match your needs, and your way of doing business. The last thing you want is an over-zealous, pushy salesman who tells you whatever they think will make you sign on the dotted line!

Think about these attributes, for a more satisfactory and long lasting business relationship:

  • Provides reliable customer service during your business hours

  • Takes the best interest of your business to heart

  • Has a record of stability and an honest reputation

  • Listens to what you have to say and respects your vision

  • Doesn’t lay down ultimatums or unreasonable deadlines

How Do I Start the Process?

Understand that while this type of loan is fast and not predicated on your credit alone, the interest and fees are going to be much higher than a traditional business loan. It makes sense, right? Because the repayments are made based upon your customer credit card transactions, you will need to show a certain amount of good faith, and be able to check most of the following boxes:

  • Over one year in business

  • More than a year left on your lease

  • Over 6 months credit card processing history

  • No current property liens

  • No other open cash advance contracts

  • Maintenance of solid financial records

A word to the wise, make your selection of vendors before filling out any applications. Look for actual money providers, rather than broker-types who will ‘shop’ your loan; it may impact your credit negatively if several loan ‘inquiries’ show up.


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