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Quick guide - business cash advance

How a business cash advance works

How to qualify

If you have a business that accepts credit card sales, you can apply for a business cash advance, particularly if your credit card sales are strong.

How to repay your loan

The lender collects the money from a portion of your credit card sales on a regular basis until the loan is all repaid. This usually happens in the span of one year.

Is this loan system legal?

Lending laws exist of course, but the providers rationalise that this business cash advance does not work the way a loan traditionally works. The providers consider a business cash advance as a purchase of a portion of your sales.

The pros

Flexible repayment schedule

There is no fixed time to repay and neither is there a fixed amount to repay. The lender simply collects a portion of your credit card sales regularly until the loan is repaid. How fast or slow your credit card sales are, is an influencing factor.

A way for small businesses to survive

This kind of loan may be the short term answer that your business needs in order to survive. When sales are slow, you can use this loan to bridge over until your funds become sufficient.

Should you apply for a business cash advance?

Yes, under the right circumstances. Use this cash advance as a way to tie over a slow period that happens once in a while. Treat this as a small and short term loan by using it as such.

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