Why Business Cash Advances?

In the current economic climate, some method of outside funding is essential for almost many businesses. However, post-recession, many banks have tightened their criteria. Their aim to only lend to borrowers they seem as stable as possible. With more businesses getting turned down, this has led to a rise in alternative funding solutions for those who need funds, but are unable to get them from banks. One of the most popular types of this is a business cash advance, also known as a merchant cash advance.

When wondering what the value of a business cash advance is versus some of the other alternatives like microloans or business credit cards, there are a few main points that you should consider.

Things To Consider

Ease of Qualification: One of the biggest things holding businesses back when it comes to funding is credit history. This is both the business’s as well as that of the owner. Business cash advances do not focus on credit history, collateral, or many of the other factors that loans do. Instead, their main focus is on the potential of a business to be successful.

Speed: Many have heard horror stories about the long waits for loans from banks. With business cash advances, speed is essential, and it is common to get your funds in a matter of days after you qualify.

Repayment: Rather than a large monthly payment, business cash advances are very different. These function as the advance lender buying a portion of future sales with the advance. A certain steady percentage of future sales will go to the lender.

Minimal Restrictions: Some banks, before providing a loan, require a plan explaining how you will spend the funds. In some cases, they will not allow funds for certain things, like payroll or general cash flow. Business cash advances carry no such limitations.

Who Can Use A Business Cash Advance Best?

While any business can take advantage of the benefits of a business cash advance, some are perfect fits. For example, newcomers who haven’t been around long enough to build up credit or collateral can get money based on their success. At the same time, business veterans shouldn’t shy away either. The quick infusion of working capital can get you through a rough patch without the need for a loan.

In general, business cash advances serve as a solid alternative in a market, where businesses are finding themselves rejected more and more by “traditional” lenders. These can be better than incurring heavy debt or turning to alternatives like private lenders. A business cash advance is a versatile way to get money into your business quickly while incurring as minimal an amount of risk as possible. At eBusiness Funding, we aim to do just that.

How Do They Work?

eBusiness Funding helps businesses that may struggle with traditional lenders. To do this, we provide merchant cash advances that are accessible to a wider spread of businesses than bank loans or private lenders. 95% of businesses that meet our simple requirements qualify for funding. All you need is to be in business for at least six months, with over $10,000 in monthly revenue. With us, it’s not about past credit history or collateral, but about your business’s potential.

It’s important to us that you use the funds we offer in the most helpful way possible, so we place no restrictions on how you spend our advances. Payroll, expansion, repairs, spend on what you need! We also get you your funds fast, sometimes as soon as 72 hours after you first apply. Repayment is also very simple. Rather than large monthly payments, we take an established percentage of your future sales. This is set up by our skilled consultants. This percentage stays the same, so if business slows down, you pay less.

Interested? If you’re ready to begin, all you need to do to start is fill out this simple contact form. We’ll be waiting, and are looking forward to helping your business get the funding support it needs.

Understanding Business Cash Advance

A Business Cash Advance is considered short-term funding focused on providing cash to small businesses. This is compared to other longer term loans that are tied to much larger amounts of money. A Business Cash Advance is not a traditional loan in the way you have come to understand bank loans. This is a funding option that is best defined as an arrangement where cash is provided to the small business in advance.  The funding is tied to the business’ average daily sales.

Why Would You Choose A Business Cash Advance Over A Traditional Loan?

A Business Cash Advance is short-term funding to help a business get through different situations. Businesses take this quick funding with the understanding they will be repaying the funds in addition to specific fees. This can often cost more than a traditional business loan because of the fees and the return rate. However, our Business Cash Advance offers a 95% approval rate. Compare that to a bank loan which has approximately a 20% acceptance rate.

Getting approved for a Business Cash Advance is quick and simple. After you are approved for an advance the provider usually takes a percentage from the business’s sales each day. This process continues until the full amount has been repaid. A huge benefit to the fixed percentage retrieval of daily revenue is towards seasonal businesses. During the times when your business is not driving as many sales, the amount you pay back is much lower since it is a fixed percentage, not a fixed dollar.

A Business Cash Advance is not for everyone. But for those who feel it is right for them and their type of business, it can pay off as you grow your business. The ability to get cash-in-hand quickly can make all the difference as you are starting out. You have the chance to have a provider look at the potential of your business, not the history. With the opportunity to focus on a payback schedule that matches your business, a Business Cash Advance has it’s benefits.

The ability to get cash without as many strings attached does mean higher fees. But if you know the funds are going to be able to be paid back quickly this could be the option for you. If you are not sure of your company’s cash flow over the next few months, a Business Cash Advance could still work for you.

The ability to apply for immediate funding is an appealing concept for businesses. Not everyone qualifies for a traditional bank or financial institution loan. Banks will often ask for collateral to hold against you just in case you can’t pay back the loan. They will also look at your business history. Your credit rating is a factor. Even if you have a perfect credit score and you are applying for a loan with your business partner, if their credit rating is poor you can be denied.

Short-term financing options can help you build your credit. This can help you secure long-term financing in the future from a financial institution. For us, we aren’t as concerned about how you are using the money. You can use the funds for cash flow or for the purchase of inventory. You can even use it to pay back unexpected expenses or other debts. We just want to make sure the cash is helping you grow your business.

Ready to Get Started?

So are you ready to apply for a Business Cash Advance?  Give us a call today 305-985-6848

Find Out How Much You Qualify For Here