Extra money is something that almost all small business owners need at one point or another in their business' lifetime. After putting all available funds into a business, including money from savings accounts, friends and family members and even government grants, the financial demands of owning a small business can often require even still, more money. At this point, most small business owners turn to the bank in attempt to get a small business loan.
In theory, a small business loan sounds great; getting a sum of money for your small business that doesn't have to be paid back until later. But after going a little further and doing a little bit more research, you might find the process is not as simple as it may seem, and seeking out a small business cash advance instead may be the better option for you and your business. Read about the four REs (requirements, repayment, renewal and rewards), and find out why a small business cash advance may be preferable to a small business loan.
When it comes to finding money for your small business, you usually want to get it as quickly as possible. The requirements for getting a small business loan through the bank can slow that process down significantly. Most banks require that a borrower has excellent credit (a credit score of 700 or higher) collateral, equity, experience (ideally one to three years), cash flow and to top it off, the potential borrower is expected to provide personal and financial income statements and supporting documents. Not only are these requirements that very few people meet, but they transform the act of getting a small business loan into a complicated and lengthy process.
The requirements for a small business cash advance are much less harsh. If you own a business that has been running for a minimum of four months and you process at least $2,500 in monthly credit card sales, you could be eligible to receive a small business cash advance. And as long as you have at least one year left on your business' lease and have no unresolved bankruptcies, a small business cash advance could be in your near future.
Much like the application process, the repayment process of a small business loan can be a hassle. Most banks require small business loans to be repaid through scheduled payments over a fixed period of time, which usually includes interest.
The repayment process of a small business cash advance lacks the stress that can come along with repaying a small business loan. Your payments are based on the amount of credit card sales that your business processes. Therefore, if your business' sales happen to slow down during the repayment process for one reason or another, so do your small business cash advance repayments. How is this possible? Every time a customer makes a purchase from your business using a Visa or MasterCard, a small percentage of that sale is applied to the repayment of your small business cash advance. This is done until your advance is completely paid off, creating a worry-free and stress-free repayment process.
We want to keep our customers happy and satisfied. That is why we offer small business cash advance renewals. When you have paid off 60 percent of your small business cash advance, you become eligible for a renewal, meaning you can get even more money for your business, with the same easy repayment process. Most of our customers decide to cash in on this opportunity, understanding how important it is to have cash readily available for their businesses.
We understand that if you already have an established relationship with your bank, great credit, collateral, and a superb personal finance history, a small business loan via a bank may be best for you. But if you are amongst the many, many small business owners who do not fall into this category, consider applying for a small business cash advance. We can help you get the money you need for your business.
When you receive a small business cash advance, your customers' credit card purchases serve two purposes. As you know, they the serve as the source of your advance's repayment, but they also can make you eligible to receive some exciting rewards, including trips to the Hawaiian Island, Jamaica, and Tahiti. You've always been able to earn reward points by making personal credit card purchases. Now, let your customers' credit card purchases earn you rewards, and possibly send you on the vacation of a lifetime.
