Cash Advances – Using Debt To Your Advantage
New businesses usually incur debt to cover their start-up cash outlays. Once personal savings are tapped, many business owners are not aware of the company cash advance programs that alternative financing lenders offer. Usually the business owners start exploring the available programs for operating capital that banks, credit unions and traditional lending institutions offer. Many times this old path leads to a brick wall.
They soon realize that not having a two year track record of business puts them at a disadvantage for commanding the best interest rates and terms. And suddenly everything they have invested in their business is seen as collateral to secure the loan. It is at that point that they start investigating the alternative business funding opportunities that companies like US Business Finance Corp have. US Business Finance has a mission to assist small businesses get the professional support and financial lending opportunities that more established businesses enjoy.
Small business owners can have access to cash based on their business’ record of sales.
The more entrepreneurial-spirited a business owner is, the bigger their dreams, their risks and their eventual rewards. It is that element of risk that, though making a small business worthwhile, also makes banks resistant to them. US Business Finance Corp offer programs, such as company cash advances, that help entrepreneurs gain access to operating capital fast – without using everything they have put into their company as collateral.
US Business Finance understands that there is “bad debt” that can hurt a company even as it provides operating capital for near term expenses. Bad debt is simply borrowed money that does not provide a way for is repayment. As Eli Goldratt pointed out, “Most small businesses fail because they fixed the wrong problem.” Our company cash advance program falls in the category of “good debt” since it both provides a way for its repayment at the same time that it provides cash to increase business through increased marketing, inventory or facility expansion. A cash advance is a win-win option.
In the sense of the company’s balance sheet, a company cash advance is an invisible asset. Since it is not a loan, it does not show up as a liability, but the cash appears on the beneficial side of the ledger. A portion of future V/MC credit card sales repays the cash advance over a relatively short period of time.
If you are a business owner in one of the typically underserved types of business such as restaurants, independent bookstores, used car dealers, or educational seminar trainer US Business Finance Corp has experience helping businesses like your turn their future sales into a cash advance to meet current business needs. Let US Business Finance Corp help your company bridge its current business to future growth.
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Filed under: Alternative Capital, Business Cash Advance, Money Matters - Business, Your New Business
