Benefits Of Cash Advances For Small Businesses

Cash advance is non-collateral kind of loan offered to businesses by financial institutions to help them meet urgent cash flow demands in their day to day operations. This means it does not need any security to be extended by the provider. Cash advance is offered against expected credit card sales at a discount. In essence, a business receives cash as a percentage of future credit sales. These loans are convenient than the ordinary ones which require security in the form of properties ownership documents such as land title deed, motor vehicle log book, insurance policies documents and stocks ownership documents. The following are five benefits of cash advances for small businesses as a way of obtaining finances for daily operations.

Benefits of cash benefits for small businesses

Collateral is not necessary

dsfsdfdsfsdfsdfThe business does not need to have any of its assets attached by the lending institution as collateral against cash advance. Future credit card sales act as the security that is enough to be lent the cash advance. The cash advanced is a small percentage of the future credit sales. This acts as a cushion against the total credit sales not being settled by the debtors. Small businesses that lack high-value assets to act as collateral against loan are not disadvantaged. They can compete with other large business entities that have valuable assets that they can pledge as security against loans.

Flexible repayment terms

The periodical repayment amount agreed between the lender, and the business is usually a fixed fraction of future credit sales. Sales frequently vary from month to month. The amount to pay back as cash advance will, in the same way, vary from one month to another.

The varying of repayment amount with monthly sales ensure fewer amounts are paid during low seasons, and more amounts are paid during high seasons. This is unlike the loans that are usually a fixed figure irrespective of the sales. Loan repayment may put pressure on an already stressed business due to financial constraints. For this reason, cash advance has a great benefit to small businesses.

Catalyst for higher sales

hgfghfghgfhgfA cash advance can be obtained to finance huge orders that a small business could otherwise not get funds for. The business will get cash equivalent to a certain fraction of the expected credit sale and utilize it in servicing the big orders hence increasing its sales. This enables the business to remain stable, generate more revenue and even unlock some locked up potential that could not have been utilized. The business is also able to compete with its rivals and not lose present and future opportunities for failure to deliver substantially.

Ease of obtaining

The providers of cash advance consider only the monthly credit sales and the period over which the business has been in existence to offer it. These are quite simple and direct parameters making the application procedure easy and convenient. Normal loans usually have complex application procedures and require many documents. Many small businesses would not qualify for the traditional loans. However, the ease of applying and obtaining cash advance that is very convenient for small businesses enable many small business access funding.


Capital Funding: Innovative Ways to Raise Money for Business Operation

Everyone dreams of something. Most dreams are about creating something unique. Coming up with an idea and executing in a way that the world lives to remember your worldly contributions. The problem set it when it comes to generating the capital funding that you need to turn dreams into reality.

The steep competition for start-up funding from all sorts of entrepreneurs makes matters worse. Besides these, not everyone can share your entrepreneurial vision. Therefore, convincing your family and friends to follow you into a partnership deal to help you raise the money can be difficult as well.

Below are innovative tips on how to jump the capital funding handle and attain your entrepreneurial goals:

Services for Services

ghdgd64Irrespective of your line of trade, you can always exchange services for services. A transport firm can, for instance, help a garage owner to ship in spare parts in exchange for free auto mechanic services. A web design firm can get free lunch for its employees for creating and maintaining a web site for a local food store.

The exchange of services pays up in different ways at the end of the day. Though no money is exchanged for the services, the SEO firm becomes a lucrative firm to work for because it offers “free lunch”, a factor that enables it to attract and retain the best designers and SEO experts. The firm gets to show case its web design prowess to those visiting the website. They also get recommendations and testimonies that stand to bring them more clients as the local food joint grows in revenue and popularity.

Social media hype

Launch your project or idea as the next big thing. Use the power of the social media to gauge the market mood. The move aims at finding the market leaders’ weaknesses, and this gets you the leverage you need for a successful product launch. Engage the services of widely-read bloggers. Let them air their opinions in favor of your product without making it sound like a sales pitch. Note that there is nothing wrong with this as its legal to have a promotional feature article on a popular blog, newspaper or magazine.

Once the world has gotten the wind, your upcoming revolutionary product, and many appear to like it, move to the next stage and trap investors. Remember that an investor is likely put in money given your level of possible future success. At the start, don’t look further than consumer loans and other forms of personal loans that you can secure without collateral. Remember the significance of putting your debt portfolio low and well-managed since it’s always a matter of concern whenever an investor considers jumping into your ship for a sail to the top.


The concept of capital funding has evolved over the years and should be approached with a touch of innovation. The more innovative you get, the sweeter your startup story and the bigger the brands you get to align in your list of clients. Alternatively, you can dream up something, outline in on paper and then seek professional capital funding experts to help you pull the strings of innovative fund raising techniques.