Cash Advance: A Quick Solution for Business Cashflow

If you are a business owner and incur seasonal cashflow fluctuations you know how this can throw your business into a financial crisis and halt your business activities. Worse still, you still struggle to meet even the simple daily cash needs. If this sounds familiar, this article is for you. But before we delve into the meat and potatoes, let’s look at what a cash advance loan is.

What is a Cash Advance Loan?

A cash advance loan is a quick financing given to an individual or business to help bridge a temporary financial gap. The borrower is expected to repay the money in a few weeks or months. 

Types of Cash Advance Loans

Merchant Cash Advances: Loans given to businesses depending on their credit card sales or daily sales percentage.

Credit Card Cash Advances: Allows businesses to borrow money against the available credit card balance.

Line of Credit Advances: Similar to a credit cash advance but via a pre-approved line of credit.

Payday Loans: Funding that is done depending on the borrower’s next paycheck.

Benefits of Cash Advance Loan

We all know that securing a traditional loan is challenging for startups or businesses with bad credit. But with a cash advance loan, you can secure funding fast, even with bad credit. Sounds good, right? Now, let’s have a look at what benefits you get.

1. No collateral

Unlike most loans that require lenders to provide assets as collateral for cash advances, businesses can secure financing without having substantial assets. This allows merchants to bridge cashflow gaps before they affect business operations.

2. Quick Access to Funds

Unlike traditional loans that have long application processes and approval, cash advances are fast and simple. Businesses can get financing within a few days of application, making it a go-to option in times of emergency.

3. Short Payment Period

Cash advance loans have shorter repayment periods, making it easy for merchants to pay fast depending on their sales or revenue. 

Is Cash Advance Right for You?

Cash advance loans are suitable during emergencies like bridging cashflow gaps such as seasonal cash fluctuations, unexpected bills, hiring more staff, and equipment upgrades. Before applying for emergency funding, make sure you have made your projections right to avoid borrowing lessor excess. At Countrywide Financials, we help businesses secure the right financing at affordable rates. Contact us today for assistance.