Today, we will look at two case studies on the use of a business cash advance. You should be able to see the reasons why one strategy worked and the other did not by the end of today’s article.
Case Study One: When Steve walked onto the shop floor, he could immediately tell that something was wrong. His CNC mill, a critical piece of equipment for his company, was not running they way it should be. After some quick investigation, he realized that he’d need some replacement parts. Without any credit or cash available, he opted to use a business cash advance to pay for the repair.
Although the advance had high double-digit interest, keeping the mill operational generated hundreds of dollars a day in revenue. He rearranged the rest of his finances in the meantime. He used the income generated from incoming receipts to pay for the loan and interest the next month.
Case Study Two: Phil had been running a successful wholesale company for some time, but things were starting to change. With increased pressure to bring his prices down, he was having trouble covering all of his expenses. He became worried he wouldn’t be able to make payroll next month.
After using all other available credit, he opted to get a business cash advance to make payroll. Although this is certainly a noble gesture, it lacks the critical element of having a plan. If you don’t have a plan to pay back your advance or any other loan, you shouldn’t’ get one. It’s as simple as that.
For more information, go to Business Cash Advance at http://www.unsecuredbizloan.com/business-cash-advance/