Although numerous businesses are used to having to deal with reduced cash flows during quieter periods, many of them have become used to doing so by applying for a business loan. While this may provide them with temporary financial relief, it will end up costing them a lot more in the long term. Instead, they should consider the option of applying for a cash advance the next time they need a lump sum of money in a hurry.

Dealing with a Business Loan

In most cases, qualifying for and obtaining a business loan requires a lot more effort and paperwork than being granted a cash advance. Loans will require that business owners have a good credit rating and in most cases, a few days or weeks may pass before the business owner finds out whether or not an application has been approved. If a loan is granted, the business owner should be aware that there will also be administrative charges and interest rates that will be added to the cost of the loan. This means that the loan will not only take a long time to repay; the business owner could end up repaying as much as three times more than the amount that was initially borrowed.

Opting for a Cash Advance

As with a loan, a cash advance also provides a business owner with much-needed cash flow whenever needed. However, one of the main advantages of opting for a cash advance is that only the actual amount borrowed will need to be repaid. No additional administrative fees or interest will be added on to the loan, meaning that a business owner will be able to repay it a lot faster than a business loan. In most cases, applications for cash advances are also less complicated to deal with and approval is normally granted within 48 hours at the most – provided that the necessary information has been supplied and that certain pre-qualifying criteria have been met.

Terms and Conditions

Although a business owner stands more chance of being granted a cash advance, there are still a few terms and conditions that will need to be adhered to in order to for it to be granted. One of the most important criteria is that the business needs to have at least one physical location that has been in operation for 12 months or more. Because the cash advance system works by deducting a portion of future credit card sales, the business in question will also need to have been accepting card payments. Business owners who apply will also need to have a good credit score and not have been blacklisted recently.

In most instances, applying for a cash advance is a quick and easy process that involves filling out a single form and waiting for a response. Once the advance has been received, a business owner will be able to determine whether they wish to repay it as they get money in or they can make set monthly repayments if they prefer to work this way. For more information please visit: