Learn What is Cash Advance and How to Apply


Jeffrey Bumbales

As a small business owner, you may occasionally experience what it feels like to ride a financial roller coaster. Sudden, unexpected emergencies can send you and your business on a stressful ride, looking for quick access to a funding solution.

When bank loans are not a viable option, because of the time they take and their credit requirements, you need other options. A business cash advance may be exactly what you need to keep your business on track.


Why a Business Cash Advance?

Whether it’s for daily operating expenses, emergency repairs for needed equipment, or making payroll, sometimes cash is in short supply, but it is desperately needed to keep your business moving forward.

According to forbes.com, today’s small business owners skip the bank and its stringent credit requirements (lengthy business history, collateral and excellent credit scores) and are turning to alternative lenders. The business cash advance is a creative funding solution that is fundamentally changing the way in which small businesses owners can easily address any unexpected cash-flow crisis as it arises.


What is Cash Advance?

A business or cash advance is an unsecured advance on your future earnings, which allows you access to tomorrow’s business sales, today. So, it is not to be confused with a “loan” and your credit score is not a factor in obtaining these funds. Unlike a small business bank loan, your credit history, the age of your business, collateral, or a detailed business plan is not required.

A few facts:

  • Approval is based upon your sales volume and the overall health of your business as a whole. Basically, merchant cash advance companies look at the potential of what you have created, or are in the process of building, in a business.
  • You can apply quickly and easily for a business cash advance online. You will be asked to include a few bank statements and typically that is all that is required. You will receive an answer to your application within a couple of days.
  • The repayment of the advance you receive is based upon a small, set percentage of your business’s daily credit card processing receipts. This takes most of the risk out of this funding option. Your payments are not a set amount, but are based upon the current sales volume of your business. So, your business can ebb and flow and your payment will adjust accordingly.

According to bizfinance.com, merchant cash advances are the leading funding solution chosen by small business owners who find themselves in need of supplementing their cash flow quickly. With easy terms and limited requirements, a merchant cash advance provides a solution that fills the void left by the banking industry, and focuses on small business owners’ unique needs.

There are solutions that answer to your need for fast, easy, business cash-flow. To learn more about creative business funding options that meet the needs of modern businesses, contact Credibly today!