Cash Advance – Credit Card Advance Blog
Something to make mention of in regards to business cash advances when compared with business loans is frequency of approval. In the current economic state, consumers are having a hard time paying their bills. As we know, the mortgage crisis has become out of control lately. Banks are lending money to people who aren’t able to repay it, leaving them at a loss, too. We may consider the bank to be immune to financial duress, but this simply isn’t the case. With the concern that more and more people are going to default on their loans, the banks have tightened their belts and thrown out their checkbooks. They don’t want to give loans, even when you have the required credit score and necessary collateral to guarantee these items, because, at one point, the people that owe them money now had those things, too. Not only are approval standards as strict as they’ve ever been, but loan amounts have declined significantly.
Where at one time business owner X would have easily qualified for a $35,000 loan with his business as collateral, now the banks are declining him because they are afraid that he, like so many others, will fall directly into the hands of bankruptcy. Business cash advances are nothing like business loans. No credit is required, there are no marks on your credit record. It is not a loan at all; it is the sale of your future credit card receivables. If your business is one that is essential for consumers, if your credit card sales have been steady for the past few months, a business cash advance is definitely going to be an option for you to look into. Not only is there no concern as far is if the bank is going to have issues with trust on you repaying them, but even better, is that it is worry-free on your end. Your payment amounts are directly based on how much you process; if you don’t process any credit cards, you don’t pay any of your cash advance.
Cash advance lenders want to make sure that they’re going to get their money back, so they aren’t going to charge you so much that it strips your business of all it’s working capital. So why would you want to go through the bank’s application process? Why would you want to spend weeks, months even, trying to get approved for a loan, having to put your business up for collateral, just to be told that the bank doesn’t want to lend to you? There is too much hassle involved, and the negative marks shown as an outstanding balance on your credit report are reason enough to make a business cash advance your first choice when it comes to unsecured business funding.