Denouncing Three Most Popular Beliefs about Business Cash Advance

A business cash advance is an excellent option for any business that accepts credit card payments on a regular basis and once in a while needs a quick boost in the working capital. That being said, there are a lot of myths surrounding this type of business funding that has kept a lot of business owners away from it. In this article we will review the top three myths about this product that could be keeping you away from making the best decision.

#1. A business cash advance and loan are the same thing

While the process of acquiring a business cash advance is similar to that of getting a business loan, the two products are not the same. Unlike business loans, cash advances are given on the basis of your daily or weekly credit card sales and overall sales percentage from your business. A cash advance borrower is not therefore stuck on a fixed payment schedule which makes it easier and faster to complete payments.

Cash advances are more flexible that business loans and the amount remitted to you is based on the amount your business makes on a daily or weekly basis. This business finance is therefore less financially stressing compared to loans.

#2. Business cash advances have a higher interest rates compared to other business finances

Business cash advance is typically offered based on the requirements of the funder, your projected income and business sales volumes. There is usually no interest charged on business cash advances because they are not considered loans. Instead, you are expected to forfeit a percentage of your future credit card or overall sales. The percentage can be from five to 20 depending on the amount you want and your agreement with the provider.

The funder will explain to you the amount you are expected to remit after approving you for this business finance. A good funder will be very transparent with you and will in fact not approve you for a cash advance if they're not certain of your ability to pay.

#3. Business cash advance is only for business that are failing

Business cash advances have been shunned as a funding option for desperate business. This is far from the truth because all types of business whether big or small can benefit from this business finance. When your business needs a quick boost in working capital, traditional loans can be disadvantageous due to the long process of application and approval. A cash influx can be used to boost cash flow, for renovations and expansions, to purchase equipment, for advertising and marketing among other uses.

Swiftloans
https://www.swiftloans.com.au/