What do you do if your company has a sudden emergency, and you don’t have the funds to pay for it? Hopefully, this never happens to you, and you have appropriate emergency provisions in place. However, if it does, there are a few options that may work. You could try getting a personal advance, if you are running your company part-time. Either that, or you could seek out a business cash advance. We’re going to be discussing these options, in today’s article.
The first thing you’ll want to consider when weighing these options is how much personal risk your business is worth. When seeking a personal advance, you may end up paying less in the long run. However, what if things continue to go wrong and your personal finances, plus credit, are attached to the advance? This is something you’ll want to consider carefully when deciding between a personal advance and business cash advance.
Speaking of costs, how much do business cash advances cost compared to a personal one? Well, that depends on a number of factors. One of these factors is the amount of time it takes you to repay it.
A cash advance for your business can also be referred to as a merchant account advance. These are not loans, as is the case with a personal advance. Instead, they entail selling future credit card sales. So, if you sell $10,000 worth of sales, you would negotiate how fast you’ll have to sell them.
The company giving you the advance would take out a discount rate. If that rate is 10%, and you pay it back in six months, your effective yearly interest rate is 20%. Remember, this isn’t actually interest. There is no benefit from paying it back quickly, and there’s no penalty for paying it back slowly.
For more information, go to Business Cash Advance at http://www.unsecuredbizloan.com/business-cash-advance/