Is a Business Cash Advance a Last Resort Business Loan?

It is not surprising that many people consider getting a business cash advance as a last resort when they need working capital for their business. I think the main reason for this assumption is that they are available to so many; even those with bad credit.

Having bad credit is a good reason to consider this alternative financing, but it certainly isn’t the only reason. Businesses have been using receivables factoring for centuries, but it wasn’t until recently that someone came up with the concept of using credit card receivables exclusively and using the merchant’s credit card machine at the means to pay it back. That is why they are able to finance a much greater percentage of applicants than banks can.

So what are the other reasons why someone would consider getting a business cash advance instead of a bank loan?

As I have mention before; it is much easier to get approved by a merchant loan provider than by a bank. Getting approved by a bank is difficult. Getting approved when you have bad credit is almost impossible. So in that respect; it could be considered a last resort. So what if your credit is good.

One reason why many business owners are opting for a merchant loan is that that an emergency came up or they need the money in a hurry. Cash advances take a fraction of the time it takes banks to process your loan. By that time it may be too late. The average time it takes to fund is 4-7 days in most cases.

Many business owners are turned down even if they have good credit. The reason for this is because they do not have sufficient collateral. Business cash advances do not require collateral, which is why they are sometimes called an unsecured business loan.

There are many other reasons to consider this funding alternative. The following link can offer all the information you need about business cash advances to make an informed decision. Thousands of small businesses have used merchant loans and nearly 80% of them come back again.