When all available means of financing have all but dried up there is
one form of capital acquisition that has become readily available. It is
offered to small business owners and comes in the form of a business
cash advance. What makes it a viable option for many is that for the
most part what determines the terms and conditions are previous sales
history and not credit history or available collateral.
The
application process is much easier than that of traditional financing.
Most lending institutions simply require three to four months of both
business bank statements and merchant account statements along with a
one page application. Final approval is received in as little as
twenty-four hours.
The terms are also much different than
conventional business loans. While in a typical business loan there is a
set interest rate and term (usually in years) to pay back the loan, a
business cash advance has a factor rate, holdback percentage, and a term
(usually in months).
