Business cash advances can be used in order to grow your business without having to bring another person into your company but do you really understand how they work and what the benefits are? You can organize a loan as low as just a few thousand pounds or as high as tens of thousands of pounds and they work differently to a regular type of loan that you need to pay back every week or month (depending on your agreement).
You pay this type of advance back simply by giving a percentage of your debit and credit card sales, which means that you only have to pay back the loan as and when you make a sale. There are many benefits to this with the most obvious one being that you don’t have any pressure to pay back the loan if you have a quiet month, which is fantastic in terms of managing your cash flow. There are many frequently asked questions about business cash advances and we are going to cover a lot of information now, so that you know everything you need to know before you decide whether or not taking out a cash advance will suit you.
- There are no APR’s, late fees and interest charges
- You have a lot of flexibility in terms of when you pay back the advance
- You don’t need to provide a business plan to be approved
- You can make an application over the phone or online in just a few minutes by providing simple information
- Your business will have to be up and running for at least 12 months to get approved for the advance
- You will need to prove a minimum amount of sales per month (usually around £5,000) to get approved
- The processing of repayments will be set up to work automatically, so that it doesn’t affect the day to day running of your company
- You don’t need to supply any security to get approved for the advance
- It is a cash-flow friendly financial solution, as you only pay the money back when you make sales
- The fact that there are not any fixed payment schedules means that you pay back the loan as and when you can afford to
You can even get hold of on-going funding for your business by contacting a company that specializes in cash advances and the flexibility of repayments are what make this option so appealing.
Every business owner needs to be able to grow their business but as with many things in life, a lack of finances can hinder their ability to take their business to the next level. Having to focus on daily chores to run a company can also mean that you don’t have any spare time to create a plan on how you will expand your company and if this applies to you, make sure you take some time out to work out where you can spend extra money and then apply for a cash advance rather than a loan.