Business Cash Advance vs Small Business Loan
A business cash advance has some similarities to a business loan, but it also has some major differences
Though the business cash advance and the small business loan have a lot in common, they also have key differences that distinguish one from the other. Yes, they are both adequate methods of business financing, but which option is best for your business?
With both the business cash advance and the small business loan, business owners have the opportunity to receive up to $500,000. These funds can then be used to make business purchases and to increase working capital, but the similarities stop there.
Unlike a business cash advance, small business loans can be used to finance start-up businesses. They are also less expensive than the business cash advance.
Still, unlike a bank loan, the business cash advance is unsecured, meaning no collateral is required and the entire process, from application to funding, can take as little as two weeks. In order to receive a business cash advance, a business owner must provide the last 4 months of his/her business’s credit card statements. Therefore, a business cash advance would not be a suitable method of business financing for a start-up.
There are no restrictions on how a business cash advance can be used, whereas when it comes to applying for a small business loan, the lender will review your plans and determine if it would be a good idea to provide you with funds, based on your explanation.
For a merchant who wants fast cash, the business cash advance is the best way to go. Even if you have less than perfect credit and no collateral, you can receive $5,000 to $500,000 for your business.