Business cash advance is one of the easiest ways to maintain a healthy cash flow and meet the necessary cash availability for the day-to-day business activities. It is a relatively new method of financing your short-term cash needs compared to business loans, however it is much safer and easier on the purse from a borrower’s perspective.
While many people are quite apprehensive about business. you can apply for same day loans and have a pre-conceived notion that they are just the same old loan sharks in a new disguise, the fact is that business cash advance and business loans are totally different.
With business loans comes the liability of repaying back according to predetermined schedule, there is always a risk of defaulting and the fear of losing your credit score. However, business cash advance is a much easier process and the repayment is done through Visa or Master card sales receipts. Payments received through Visa and Master cards are accounted for repaying the cash advance amount and no other sales proceeds are involved. This helps the borrower to repay the business cash advance easily while maintaining a steady income through other sales receipts.
Not just repayment is easy with business cash advance but it is also easier to get a business cash advance compared to a small business loan. While to get a business loan the borrower would have to go through a lot of documentation and will also probably require some suitable collateral, getting a business cash advance is much easier. The paperwork is comparatively less and the cash advances are approved comparatively faster. Also, while some companies would ask for collateral most companies would not require any collateral to offer a business cash advance.