Business cash advance introduction
Securing a traditional business loan can be difficult. You're required to fill out extensive paperwork, endure lengthy background and credit checks, and provide adequate collateral - and that still doesn't guarantee you'll be approved. If you need quick cash for your business with less documentation than a standard loan requires, a business cash advance (also known as a merchant cash advance) can help.
With a business cash advance, you sell a percentage of your business's future credit card transactions to a provider. The provider reviews your credit card transaction history, and advances you cash based on your average monthly revenue. Then, they take an agreed-upon percentage of your future credit card receipts to repay the advance.
This type of short-term financing doesn't carry the same restrictions as a standard business loan, and with good reason - a business cash advance is not a loan, but rather a purchase and sale agreement. The provider buys the right to take money from your credit card transactions and sells those rights back to you for a fee.
Since this transaction is risky for the provider, you pay a steep premium for the money - as much as 40% of your total advance. But for businesses that don't qualify for loans and need funds immediately, a business cash advance may be well worth the expense.
This BuyerZone Business Cash Advance Buyer's Guide will explain:
- How to qualify for a business cash advance
- How the business cash advance process works
- Suggestions for finding reliable providers
- Typical pricing information
Once you review the information in this buyer's guide, submit a free request for business cash advance quotes to be matched with multiple cash advance providers.