If you have a small company that is in need of emergency funding, you have many different options. You could pull from personal savings, or you could pull from your company’s emergency fund, for example. Alternatively, you could use your personal credit cards, your company’s credit cards, or a line of credit, as well. However, for the scope of today’s article we will be comparing two options in particular: the small business cash advance and the personal loan.
Getting a personal loan will certainly be less expensive in terms of interest, but it has some of its own disadvantages, to be sure. For one, you will be blurring the line between your company’s expenses and your own. This can be particularly problematic if your company comes under hard times and has to declare bankruptcy. Your creditors will have a much greater chance to take your personal assets if you are not careful about keeping these two categories completely separate. A business cash advance will be borrowed on behalf of your company, but at a much higher cost.
The advantage of getting a personal loan is the interest rate you are likely to pay. If you’ve established a good relationship with your bank, you should be able to obtain funding almost as quickly as with a small business cash advance, except at a much lower interest rate. The important thing to remember is to avoid this if you are concerned about the immediate future of your company. This is because you are exposing yourself and your personal finances to greater risk.
For more information, go to Small Business Cash Advance at http://www.unsecuredbizloan.com/small-business-cash-advance/