It has been experienced by many entrepreneurs that Business Cash Advance is a wiser choice than a business loan . Most businesses do reach a stage one time or another when obtaining a Loan as an additional working capital for the business becomes an essential requirement. Working Capital is normally required either to keep the failing business in running state or to implement an expansion plan. Whatever may be the reason, it is a fact that finding a source of the new capital is always a very tough exercise.
To obtain such a business loan there are various option available to the entrepreneurs, one that comes to the mind immediately is a loan from a bank or a bank loan, other options are like loan from family or friends and credit card advance. Merchant Cash Advance is also available, but for those who are in business for at least six months. Another option which many a merchant opt for is the use of Master Visa Cards, it is a quickest way of getting the required cash.
Loan through a Credit Card is not only the quickest to obtain, it provides many more advantages for the entrepreneurs. Some of the facilities that it provides are; Firstly Credit Card is utilized as future collateral. It only requires verification by the monthly merchant statements of your credit cards. Merchant Capital Specialists are readily available for young businessmen who own assets of less than $ 200,000 and do not qualify for a bank loan.
Another major advantage of such a loan is the provision of easy payback procedure. Credit Card is processed on day to day basis of sale transactions, a portion of daily sales/profits commonly known as the ‘daily captures’ is utilizes for the monthly paybacks, thus the monthly paybacks are solely depended on the monthly captures and are not fixed, the entrepreneurs feel safe with the system as they are never in any tension of a fix amount payback. The procedure to obtain this loan is also another advantage, as the cash is available to the businessmen within few days of applying, no running around, no lengthy paper works. It is for these reasons and many more that they say “A Business Cash Advance is Wiser than a Business Loan.