If you own a business you will come into situations where you may require emergency funding. It is important to plan ahead for these events and have available cash on hand. However this is not always possible and there are circumstances under which you require your emergency funds from other sources. One such source is a business cash advance. Sources such as this tend to have a negative reputation because they have very high interest rates. This is true and they should in fact only be used for emergencies but there is a time to use them and we will be discussing this in today’s discussion. Hopefully by the end of today’s discussion you will have a better understanding a business cash advance.
In understanding a business cash advance is important to realize that there are appropriate and inappropriate uses for this advance. If you cannot qualify your expense as an emergency then advance is probably not a good fit. The reason for this is that they have much higher than average interest and if you are paying for regular expenses then the added cost of the interest makes those expenses to expensive. If you hand you have a sudden emergency and you do not have the available cash on hand pay for that emergency it may in fact be less expensive to get advance then not. How is this possible? If the opportunity cost of the emergency is higher than the cost to repay the loan then the loan is a good deal matter what the expense. For example if you have a piece of equipment which generates hundreds of dollars a day for your company would make sense to get an emergency loan to fix it in the event that it stopped working? This is just one example of many but the point being that there is a time and a place for all loan types including advances.
So in understanding a business cash advance we have established that there our times to get them. So how do you go about getting an advance? This is one of the easier types of loans to get typically all you need to do is demonstrate your immediate revenue and most other requirements such as business credit will not be factor. To begin your search I recommend that you Google for advances or other such terms and began sorting through the various companies to find one which works best for you.