The American small business is alive and well. About 23 million exist in the U.S., accounting for more than half of all domestic sales. Small business owners in the U.S., 42% of whom started their first ventures during childhood, are faced with a number of challenges, not the least of which is obtaining funding. The need to obtain a small business loan is not always indicative of a financial struggle, though 15% of small businesses do claim to have trouble obtaining credit or loans. Many others look for business expansion loans in order to grow businesses that are already successful.
There are many circumstances that precipitate business loan application, though some of the most common are simply a need for improved cash flow, cash for equipment purchase, inventory purchase, or immediate need for better or seasonal advertising. It is in these common scenarios that business cash advance loans shine.
Business cash advance loans are so popular because they more available than traditional loans to new business owners without business credit or to those with less-than-excellent credit ratings. In only a few days, business cash advance loans can be processed, providing businesses with the funding they need. Why are they so great?
- They have less stringent approval guidelines. Cash advances can be granted to young companies, companies without strong credit history, and companies who have been denied by other funding providers.
- They don’t require credit checks. Because repayment is often taken directly from customer credit card payments, there is no need to look into the credit histories of advance recipients.
- Personal guarantees aren’t required. Business credit cards usually do require personal guarantees, sometimes precluding some businesses from obtaining the capital they need.
- Application and approval is usually a relatively quick process. In many cases, advances are available in the business’s bank account within a few business days.
- Business cash advance loans can be used for any business need. Payroll, inventory funding, working capital, and new equipment purchase are all viable uses of cash advances.
- Repayment is simple. In many cases, a certain percentage is deducted from each customer-to-business credit card transaction, meaning that business owners don’t need to worry about monthly payments and that payments are proportional to profit.
Business cash advance loans are an excellent solution for many companies looking to add a little extra cash flow. Could they help your business get the cash it needs? Good refereneces: www.businessbacker.com