If you are looking to get immediate funding for your company you have only a few options available to you. Most traditional lenders will take too long to get you your money, and venture capital usually takes longer still. So how do you pay for emergencies if you don’t have the cash on hand? After all, any company can run into an emergency. One option is a cash advance. These have a very bad reputation as being too expensive, but there are times when they make sense. Today we will outline 3 reasons you should get a business cash advance.
1) If you have to pay for some kind of completely unexpected emergency and don’t have other resources. Before getting too far into this reason it is important to note that you should already have other resources in place, you should at the very least have an available line of credit that you don’t max out, so you have some left for emergencies. Not only is this faster than getting a brand new loan (even a fast one like this) it is also far less expensive in most instances. At any rate, if you’ve exhausted your resources and the emergency (like broken critical equipment) is costing you money, this is one of the reasons you should get a business cash advance
2) To seize certain types of opportunities. If you need to pay for an expected opportunity, maybe you run a service business but you have to hire temporary employees to fill in the ranks and help a new client, than an advance may be a good idea. You should look at the big picture when considering opportunities. Will passing up this opportunity mean you will not get the benefit of additional business in the future? Compare the long term value of what oyu are considering and compare it to the short term cost of the advance.
3) To pay obligations that if left unpaid will have a serious negative impact on your operation. This includes things like payroll. If you aren’t able to pay your employees on time, chances are they won’t stay your employees for long. Furthermore, you won’t get much productivity out of them until they have a check. This goes for service providers you deal with too, if you don’t pay them on time you disrupt their finances and they are much less likely to deal with you in the future. Once again this is a matter of comparing the temporary cost of the loan to the long term cost of not living up to your obligations.
These are just a few reasons, but most good reasons will fit into one of these categories. If it doesn’t you should consider other options entirely.