Business Cash Advance & Business Financing Alternatives 

Business Cash Advances Easier to Obtain than Subprime Loans

Posted on May 31st, 2008 by USBFC

Self-employed business owners are one of the largest market segments utilizing subprime loans and cash advances. Prime loans are helpful to those with set incomes treading the 9 to 5 employee path or very well established business. For entrepreneurs, such as restaurant owners pursuing their passion, the element of risk is a factor in their income stream. That element of risk translates into the lending world as higher interest and higher monthly payments for subprime loans, whose qualification levels have increased dramatically recently. Freedom never comes cheap.

For example, restaurateurs do have a bankable asset in their future sales to their patrons. Over the course of a week sales usually have their up days and down days, but over the course of a month, restaurants can establish an average monthly sales volume. Business cash advances are not based on the restaurant entrepreneurís personal income, or the value of the restaurant. The cash advance amount is derived from future sales that the restaurant’s patrons pay for with their VISA or MasterCard credit cards. The cash advance is based on the real sales of each business.

A restaurant owner working with a bank for a loan may feel frustrated by the loan requirements, will find trying to get a cash advance very different. Cash advances offer a ready path of working capital infusion in an amazingly short period. US Business Finance Corp has an 80% approval rate for small businesses applying for cash advances and usually has the funds to the owner within 7 to 10 working days.

With the cash advance option, a percentage of the restaurant’s future credit card sales goes to paying the cash advance. This important difference means the restaurateur doesn’t have to worry about making a fixed level of payments, which may or may not be tough dependent on their restaurant’s current sales cycle. As business picks up, the cash advance is paid off sooner. Generally, a cash advance is paid off in six months, with the ability to go out as far as twelve months.

Timing is crucial in the financial cycles of small businesses, especially restaurants that are at the mercy of tourist seasons or the fickleness of the weather. In lean times, a business cash advance can keep the operation open and in business and then be retired when the season starts and business hits its peak. The cash advance financial option provides security and stability form many businesses.

US Business Finance Corp has been the champion of small business owners like restaurateurs and understands the tensions on the road from launch to success and prosperity. It knows that small businesses need business financing help when business looks tough – right at the time traditional lending institutions decide to take their “come and talk to us after you get out of this financial difficulty” attitude. If your business runs into a financial obstacle, be sure to consider the alternative lending routes US Business Finance has used to help entrepreneurs successfully navigate their short-term rocky financial waters. We are here to help you win and prosper.

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Filed under: Alternative Capital, Business Cash Advance, Business Cash Flow, Business Finance 101, Business Solutions, Money Matters - Business

Alternative Lending – Great Savings Over Traditional Lending Options

Posted on May 30th, 2008 by USBFC

Small start-up businesses have an option of funding their beginning marketing, inventory and equipment costs through business cash advances or possibly the small business loan currently offered by a national firm through credit unions. Which one benefits your business faster and better?

Lets take a normal example of a need for a $10,000 capital infusion. The national firm’s small business loan has an advantage over usual small business loans in that it does not require collateral. Neither does a cash advance – so the two programs are well matched to compare. Due to the lack of collateral, there is a risk factor added to the small loan’s interest rate on a 5 year loan.

Over the life of the loan, the small business owner will pay more in interest in fixed monthly payments. On the other hand, entrepreneurs who have sought business funding from US Business Financing Corp get cash advances that are paid back out of the credit card income stream. The benefit is the advance is paid off in half a year to a year rather than 5 years. And the cost on the funding is lower with no penalties for pre-payment when business really picks up.

For a small business owner the business cash advance has an added benefit over the alternative of using credit cards to fund a business loan. A cash advance repayment schedule has its own discipline – the pay-off time is fixed. Credit cards debt tends to stay with the merchant unless a real determined effort is made to pay off the debt. After all, unlike US Business Finance Corp, the banks issuing credit cards are not interested in your business success, just your interest payments and keeping them long and drawn out.

Next time you need to locate operating capital for your small business, seriously consider the alternative lending resources of US Business Finance Corp. After all, our mission is to help businesses like yours to get the cash you need to succeed in less than two weeks.

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Filed under: Alternative Capital, Business Cash Advance

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