A small business needs to have a variety of funding sources if it is going to survive and thrive in the marketplace. With clients taking as long as 60 days to pay their bills after services have been rendered, there is no guarantee that there will be enough to make payroll each pay period or pay taxes when they are due.
Could a Business Cash Advance Help?
A cash advance can be used for almost anything that a business owner would need money for. For example, the loan could be used to pay employees, build a new factory or ensure that there is enough money on hand to buy supplies to fulfill a large order for a new client. If your company is finding itself unable to grow because of a lack of funds, a cash advance could be what your company needs to take things to the next level.
How Does a Company Get a Cash Advance?
There are a variety of ways that a company can get an advance. If the company has a merchant account, it could use anticipated credit card receipts as collateral for a low-interest loan. A factoring company may be willing to provide money using your accounts receivable as collateral. Instead of waiting 30 or 60 days to get paid by a client, the company can get paid right away with a factoring loan.
Is it Easy to Get a Cash Advance?
A cash advance may be easier to get than a traditional bank loan. If your company has a low credit score, it may be worth it to use future revenue as collateral for a loan instead of asking a bank for a business loan or for a personal line of credit that you will use to help your business.
Repayment Terms Are Flexible
The best reason to get a cash advance is due to the flexible repayment options. Instead of making your first payment 30 days after loan funds are dispersed, you may be able to make payments that are no more than a certain percentage of revenues. In some cases, your company may be able to defer payments for several months or only make interest payments on the loan during lean months.
Could your company benefit from a business loan? Talk to the experts at AFN who may be able to help your company use the money that your company has earned to help it get out of a financial predicament or allow it to fulfill a large order that will take it to the next level.