Business Cash Advance, Should you use them, or not?

Business Cash Advance

As a business owner, you may find there are times when you need a quick infusion of cash, this might be the time to use a business cash advance. However, I would caution you to exhaust all other resources before doing so. A business cash advance has interest rates that are much higher than a standard loan, and should be used sparingly. Today we will cover reasons – for and against – using a business cash advance

Getting a Business Cash Advance:
Rather than give you a list of specific examples, which quite frankly would not be complete or accurate for all companies, I will give a general rule of thumb to follow. If your emergency situation has a clear solution that requires extra funds, and that solution is less costly to your company than the problem, you should seek a business cash advance to get the funds you need. I would suggest making a cost benefits analysis, and believe it or not sometimes loans with high double digit interest are a good deal when compared to the alternatives. Say for example a mission critical piece of equipment breaks, how much money are you losing daily having it out of operation?

Not Getting a Business Cash Advance:
There quite a few reasons you shouldn’t but we’ll cover some of the basics. If you are having difficulty paying for some future project with traditional loans and are tired of being rejected. Unless the future project is so small in scope that it will immediately turn a profit this is not a good idea. Business cash advances must typically be paid back in ninety days or less, you will want to be sure to not use these for paying for things which ‘might’ make you money, as opposed to things that ‘will’ make you money. If you are having difficulty paying for some future project with traditional loans and are tired of being rejected. It’s important to remember that late fees for advances are severe and the cost can quickly spin out of control. This brings me to my final point; never borrow in this way if you don’t have a clear plan to repay it on time and in full. If you have a legitimate emergency and a way to pay for it a business cash advance can be a useful tool.

One final thought, there are plenty of times when emergency funds might be needed for your company’s successful future. Planning for these emergencies is an all important part to any good business plan. Creating a separate account and regularly depositing funds into that account for emergency purposes will assist you in averting the need to use things such as a Business Cash Advance.

For more information, go to Business Cash Advance at http://www.unsecuredbizloan.com

Business Cash Advance, Should you use them, or not? was last modified: December 6th, 2011 by Amit Kraidman
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2 Responses to Business Cash Advance, Should you use them, or not?

  1. Erlinda Javis says:

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  2. Polly says:

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