The Benefits of a Business Cash Advance For Startup Funding

Unfortunately, in today’s economic environment many business owners can no longer count on traditional sources of financing, such as a bank loan, credit card, or home equity loan. Whether it is due to a lack of collateral or meeting the bank’s credit requirements, traditional sources have become more restricted over the past couple of years.

This has resulted in a surge of alternative financing programs geared to meet the needs of small to medium sized businesses operating in the U.S. Programs such as accounts receivable financing, crowd funding, vendor lines of credit, merchant cards, and seller financing make it possible to obtain the capital needed to grow a startup business. The purpose of this post is to share with you the business cash advance program as a viable alternative start up funding option.

This program is a cost-effective way to obtain the immediate cash you need, without having to wait weeks on end for an answer from a lender. A business cash advance is similar to a loan because your company will receive the funding it needs and the money will need to be paid back. However, there are several distinct differences that make this program very attractive. For example, a business cash advance does not require the following: Collateral Formal business plan Financial statement Shares in equity ownership Disclosure of business assets Fixed payment schedules or due dates Additionally, you are not faced with costly interest rates, upfront costs, closing costs, or late fees that are pretty standard with traditional loans.

The amount of cash which can be advanced to your business is based upon the cash flow from your monthly credit card sales. In order to qualify many cash advance companies require that you process a minimum of $1,500 in credit card sales per month, and be in business for at least one year. You also must provide 3 months of sales records, so let’s say your company currently processes $5,000 per month on average. With those numbers you can expect to get pre-approved for approximately $6,250 and have funds in as little as 10 days with some programs.

Paying back a cash advance is simple because it is repaid through future credit card sales as they are processed through your company’s merchant account. The cash advance company will automatically deduct a small percentage of your monthly credit card sales. There are no payment schedules to worry about because all payments are automatic. This makes a business cash advance an excellent alternative to traditional funding programs. With no personal guarantees, personal credit checks, or collateral requirements, a business cash advance may be just what your company needs. Best of all, once you establish a relationship with a provider; future cash advances are readily available throughout the life of your business.

How can I use equipment financing to build my business credit report?

Whenever you make a purchase no matter how big or small, you should always consider how it may help you improve your business fundability. If you fail to recognize opportunities that come up you are shortchanging yourself and hurting your ability to get future loans or credit. The Many Benefits of Equipment Financing Improving your credit score is only one of the benefits of financing equipment for your business whether it is everyday office equipment or heavy backhoes and utility vehicles. You can depreciate the cost of the equipment as you pay for it, use it for collateral against new loans in the future and end up paying far less than leases on similar equipment.

Those benefits can increase your business' financial stability on their own, but the single most important thing large-scale purchases do is improve your business fundability by creating better credit scores. Of course, that's only true if you keep your accounts in good standing. There are many tips for improving your business credit on http://www.businessfundability.com, but keeping your equipment financing accounts in good standing is a simple procedure. • Make your monthly payment on time • Don't over-extend yourself on equipment loans These two simple steps are easy to do if you keep them at the front of your mind at all times.

If you are having cash problems, using equipment loans can help you get what you need without over-taxing your company's liquid assets. How Equipment Financing Differs from other Loans When you get an equipment loan it will have a different payment structure than a common personal loan, or regular business loan. Banks know that equipment depreciates quickly at the beginning, and will lose a lot of its value in the first few years. Therefore, payments on equipment loans will be larger in the beginning of the loan to keep the equity value in line with the loan value. It takes very good credit ratings to obtain equipment loans due to the nature of their payments. You will also have to prove you can afford the hefty early payments. Before you apply for any equipment loans make sure you have done all you can to establish strong business fundability and have all of your records in order to show your ability to pay the note.

Unsecured Business - Easy qualify Up To $250,000

Business Financing - finding the funding you need

Business financing sources are not in short supply but finding the right one can be a daunting task. We help make that task much easier. In order to assist you in your search for business finance firms, we have categorized the lending and investing criteria of funding sources in a variety of areas:

• Commercial finance
• Equipment leasing
• Government loans
• Venture capital
• Commercial real estate
• Angel investors
• Start-up financing
• Invoice factoring
• Purchase order advances
• Asset sale leasebacks

Access to sources of capital for your business is fast and easy. Your request will be matched against those business finance firms offering what you are requesting and those to which your funding need may also apply.

Here is how easy it is to fund your business:

First, you can search for your matched available funding programs for free, without having to give any personal or contact information. Provide only general business information, such as:

• The date the business started, current revenue, your industry ...
• How much money do you need for: cash, equipment, buildings ...

Then, we show your available funding programs and you select the ones that may be right for you. It is that easy. Since 1995 we have helped over 200,000 businesses in their search for capital. We want to help you too!

Click here to find funding for: Business Financing

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