Small Business Loans & Unsecured Cash Advance

Why a Business Cash Advance may be right for your Business

Essentials for a

Small Business Cash Advance

  • The business must accept payment through Visa, Master Card and American Express.
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  • Payments of $3,000 or more must be processed by the business in a month.
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  • The business must have been in operation for at least one year.
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If you are trying to obtain financing for your business, a business cash advance is one of the simplest, easiest and most popular methods.  

Financing through Business Cash Advance has been available for many years, but recent market conditions have made this option even more popular. Merchants are taking full advantage of business cash advance loans to meet their funding needs.  

As long as a business can prove $3000 or more in monthly payments processed by credit card, it is eligible for a small business cash advance.  Such a loan is repaid against credit card receipts, on the basis of the business's wages or salary.  In this manner, an advance can be quickly and easily repaid.

  


Documents a Business Needs to apply for a Business Cash Advance: 

Non-Seasonal Businesses
The business must provide the credit card processing and bank statements for each of the previous three months immediately preceding the month of application as well as statements form the previous year for each of the three months immediately following the month of application. 

Seasonal Businesses
The business must provide the credit card processing and bank statements for each of the previous twelve months immediately preceding the month of application.

 

 

money.gifAnother method of obtaining a small business cash advance is when a business sells its future credit card receivables at a discounted rate to the lender. This process is similar to factoring, but with this type of loan your credit cards receivables are factored instead of business invoices.


Repayment of this type of cash advance loan is through a business' credit card receipts.  Payments received by cash and check are retained by the business; only credit card payments can be used for loan repayment. Unsecured cash advances are automatically repaid when the business has a Visa or Master Card Sale, hence there are no fixed repayment schedules.

 

For many small businesses, a business cash advance is a sound alternative for working capital.  Unlike a loan from a venture capitalist, the cash advance business would not take equity ownership of the company. Another major advantage to the businessperson is that they are not personally liable to pay back the loan.  A company is also free to use a business cash advance for any purpose it wishes. 

 

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Have more questions about Small Business Loans?  Read our Small Business Loans FAQ
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