Small Business Cash Advances provide Working Capital for your Business (Part 2)

Business Cash Advances

Business cash advances allow small business owners with a smart solution to obtain capital in order to generate additional revenue. As opposed to a conventional bank business loan, a small business cash advance does not require a formal business plan, an operating agreement or an estimated profit statement. A conventional bank business loan typically requires meeting with bank personnel and key investors with decision-making powers.

These executives can perform extensive analyses to determine whether extending a conventional loan for your small business makes financial business sense for the investors. However, obtaining a small business cash advance is less time-consuming and involves less detailed planning. Time is an important asset to most business owners — especially, small business owners.

Contrary to popular belief, the U.S. Small Business Administration (SBA) does not offer direct funding to small businesses. Instead, the SBA offers small business owners with a plethora of literature and information on how to find small business lenders or other sources of funding. The SBA also offers a wealth of information regarding the small business cash advance industry and its popularity among small business owners.

Merchant cash advance lenders are popular funding choices for small business owners looking for a streamlined cash advance process. Similar to credit card vendors, merchant cash advance companies may offer different rates to business owners. Governed mainly by state law, merchant cash advance companies and other small business advance lenders must comply with usury laws and interest rate limits. During the recent economic recession, small business owners may find it increasingly difficult to become eligible for traditional bank loans and are turning to small business cash advance lenders.

Read Part One in this series by clicking here

For more information, go to Business Cash Advance at

Small Business Cash Advances provide Working Capital for your Business (Part 2) was last modified: February 7th, 2012 by Amit Kraidman
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