Is Business Cash Advance Right For You?

Most retail businesses, auto shops, hair salons and restaurants in business today accept credit cards as a form of payment.  This form of payment and a reliable business income is the key to acquiring immediate capital for your business.

Rather than using personal credit, personal collateral (such as your home), personal guarantees or co-signers, you can sell future credit card receivables at a discount to one of several business cash advance investors. The amount of capital you will qualify for depends on certain predetermined qualifications such as length of time in business and level of credit card sales each month. Because the funding companies purchase credit card receivables, the following are true:

• First, the business cash advance you receive it is not considered a loan and there is no impact to your personal credit nor borrowing abilities.  Additionally, there is no interest rate charged or fixed monthly repayment terms.
• Secondly, and perhaps more importantly, the risk exposure in this type of transaction shifts entirely from the borrower (traditionally business loan) to the “lender”.  Because of this there is no personal guarantee or collateral requirements, the cost of capital (as measured in financial terms only) is typically higher with a business cash advance.