Small businesses are constantly in need of funding to help the company grow during the first few years. Without cash to pay for necessary equipment, supplies or other necessities, it is not possible for the business to keep their customers. Though a business cash advance is useful, it also has a high interest rate. Fortunately, alternatives are available to provide funds without the high cost of a cash advance.
Business Credit Cards: Companies that are considering a business cash advance might consider applying for a business credit card instead, particularly when looking at company purchases. A business credit card provides an alternative to the business cash advance that has a lower interest rate and is useful to help build up the company’s credit history information. By improving the business credit history, it becomes easier to obtain a traditional business loan later.
Another benefit of credit cards is the revolving debt. As long as the business owner does not exceed the card limit, it is possible to continue using the card for years by repaying the debt.
Business Line of Credit: While a business cash advance is possible to obtain within only one year of setting up the company, a line of credit might be more appropriate for businesses that have two or more years of history. Banks and other creditors offer a business line of credit to established companies that meet their standards. This is another revolving debt that the company can use to build up credit history while avoiding the high interest charges of a business cash advance.
Start up Business Loan: Another alternative to the cash advance is a start up loan. A start up business loan is the ideal option for any company that is just beginning or that has not yet been established for a year or more. This type of funding is specifically designed around companies that need funds and are not yet making much in profits. This type of loan might require a personal guarantee or collateral.
Business cash advance loans are high cost loans. In many cases, they are better to avoid until other options are exhausted due to the high interest rate. Fortunately, a wide range of alternatives are available to help companies keep the cost of interest within a reasonable range.
For more information, go to Business Cash Advance at http://www.unsecuredbizloan.com/business-cash-advance