Easy Payments for your Business Cash Advance
A business cash advance has many benefits, like a high approval rate and a fast funding process
Business Cash Advance
For business owners with less-than-perfect credit, no collateral or who have had difficulties being approved for traditional methods of business financing, the business cash advance is like a breath of fresh air, allowing them to breathe a sigh of relief.
Not only does the business cash advance provide an alternative way to finance small business endeavors, it boasts an extremely convenient repayment process.
The business cash advance repayment process is based solely on a business’s daily credit card sales. When customers make purchases using their credit cards, a small percentage from each sale will go towards repaying the business cash advance. This method allows your repayment amount to fluctuate along with your business’s credit card sales.
The graphs below depict business cash advance monthly payments vs. traditional bank loan monthly payments.
Business Cash Advance Repayment w/ 15% Holdback vs. Traditional Bank Loan Repayment w/ $2,000 Fixed Monthly Payment
When the business owner chose a bank loan, he was given a fixed monthly payment of $2,000. His business cash advance, on the other hand, was repaid with by a 15% deduction from his business’s daily credit card sales. If you notice, in the month of March, the business owner’s credit card sales volume dropped to $4,000. Since his bank loan repayment amount was fixed, he still had to pay $2,000 in the month of March to repay his bank loan, which was half of his credit card sales for that month. However, with the business cash advance, only $600 went toward repayment during the month of March, allowing the business owner to have more money for business expenses.