Why a Business Cash Advance Works Better Than a Business Loan

Business owners need to be nimble and flexible to succeed. They need financial solutions that are equally as flexible. A business cash advance is an infusion of working capital given to a business owner in exchange for a percentage of future credit card receivables. When a business needs money, an advance can work better than a loan from a bank.



When an unexpected emergency expense arises, there isn’t time to wait for a loan officer at a bank to take weeks to process a loan request. With an application process of just a few days, a business cash advance is the timely choice when the need for money is urgent.


Simple and Accessible 

Unlike traditional loans, there is no need for a guarantor. Because the advance is tied to future credit card sales, a business owner’s personal credit is not at risk. Even if a business already owes money to creditors, it can still qualify for a cash advance. Paid back from future credit card sales, an advance is easier to get approved for than a loan. It is also more flexible to pay back. The payment fluctuates with credit card sales. The higher the sales are the faster the repayment is. If credit card sales experience periodic slowdowns, payments do as well.


Tied to Success

With a traditional bank loan, set payments are due regardless of the state of business. The payment amount and timing are both established inflexibly in the loan contract. In contrast, a business cash advance is tied to future credit card sales. The better sales a business has, the faster the advance is paid back. Instead acting like the weight of a traditional loan’s fixed monthly payment, an advance is incentive to increase sales.


Forward Looking

Banks look at credit histories when determining loan eligibility and interest rates. This is an obstacle for new business, which don’t have a much of a credit history, or existing businesses that are recovering from a past financial setback. In contrast, cash advance loans look to anticipated credit card sales figures when determining business eligibility and loan costs.

Advance loans provide greater options to both new and established businesses in need of working capital. With a quicker approval process, advance loans get business owners access to money when they need it. Tied to future credit card sales, advance loans provide flexible payments. Business cash advance loans work better than traditional business loans.