Comparing Business Cash Advances To Business Loans
Alternative financing has introduced business cash advances as a viable and competitive alternative to traditional business loans. Comparing business cash advances to business loans is like comparing apples to oranges, there are general similarities, but great differences when looking at the specifics of the financing.
A traditional business loan takes time to process and gain approval, adds a liability on the business, and increases the owner’s risk, since both a personal guarantee and collateral are necessary to secure the loan. Banks can loan money at attractive rates only because they have mitigated their risk exposure – often leading new business owners to believe that the only companies that can obtain a business loan are the ones that don’t need one.
Alternative financing looks at the underserved markets of businesses that have an element of risk involved in the loan. Alternative business funding companies such as US Business Finance Corp know that the more profitable a business is, usually the higher its risk in business. That element of risk is what drives the American entrepreneurial spirit! Taking into account the element of risk and the business owner’s proof of ability to repay a cash advance based on their Visa and MasterCard credit card sales history, US Business Finance Corp can quickly offer qualifying companies a business cash advance. Instead of a personal guarantee and collateral, the business owner pays US Business Finance to take on the risk and repays the advance from a portion of Visa and MasterCard sales!
An additional benefit of alternative financing is its short time for approval and speed of funding the approved cash advance. For emergency working capital situations, time is of the essence. For first time businesses, a company cash advance is wired directly to the business account within 7 to 10 working days of approval.
In addition, your cash advance can be used any way you need to meet your company’s needs. Unlike business loan conditions, a cash advance can be used to pay taxes, improve your infrastructure or pay overdue bills. It is entirely under the control of the business owner.
Contact our business financing professionals at US Business Finance Corp today to see how quickly you can tap into our cash advance financing. Our business cash advances are available to help your business any way you see fit!
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Filed under: Alternative Capital, Business Cash Advance, Business Cash Flow, Money Matters - Business
