What is a small business cash advance, and what are the reasons you would get one? We’ll be discussing this in today’s article. Hopefully, by the end of today’s reading you will have a better understanding of the topic.
A small business cash advance works very much like a personal cash advance in the sense that it is an amount of money that is given to you with few approval requirements. You’ll either be charged an interest rate or a discount rate, depending on the nature of the advance.
Discount rate refers to a process whereby the amount of money that is disbursed to you is less than the amount that you are borrowing. You will still owe back the full amount. As such, there is no interest in the traditional sense, since all of the fees are taken out in advance.
Why would your company need to get a small business cash advance? The answer to this depends on the nature of your business. In a nutshell, a reason you would get one is if you have an emergency or circumstances that justify the expense.
Although loans of this type cost a great deal in terms of interest or fees, they can still be advantageous when compared to the opportunity cost of an emergency situation. For example, if you have a critical piece of equipment that is broken, it may be worth paying for a high interest loan. This is especially true if it is necessary for the day-to-day operations of your company.
For more information, go to Small Business Cash Advance at http://www.unsecuredbizloan.com/small-business-cash-advance/