Business Cash Advances tied to Cash Flow

Business cash advances work by using future credit card sales which gives them the unique distinction of being tied to the business cash flow. Business cash advance providers provide your business with a certain level of funds in exchange for an agreement that stipulates paying back the provider from a percentage of credit card sales. This has a built in flexibility that no other lending process can match.

Say for example, you negotiated a 15% payback plan with the business cash advance provider. If you have credit card sales of $1000 on Monday, you’ll pay $150 to the provider. If Tuesday is a slow day and you only have $500 in credit card sales, you’ll pay $75 to the provider. If Wednesday is a holiday and you’re closed resulting in no sales, then you pay nothing for that day!

As you can see, business cash advance repayments are closely tied to your cash flow. They fluctuate depending on the level of business you’re doing. Other types of funding, such as unsecured business loans are not tied in any way to cash flow. The issuing bank couldn’t care less what level of sales you had during a given month - they will want the same payment regardless.

You won’t find this flexibility in any other kind of lending which makes the business cash advance more than a viable alternative to a conventional Unsecured Business Loans.

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