Unsecured Business Loans - Are you ready to take the leap and make a significant investment in expanding your current business? If you are planning on an expansion, and have done some research, you already know that a business loan from a bank is based on collateral and good credit. Maybe you think you have to cash in your retirement savings for business funds. These are not your only business loan options.
Unsecured business loans can be a fast financing solution, especially for those who are contemplating investing in an already promising operation. There are also two alternative options for business owners that provide quick capital regardless of credit.
What you need to know about alternative financing options.
Business Cash Advances are given to companies as an investment in future business growth. Advances are available to companies that show strong future earning potential in exchange for a percentage of their future sales. That percentage of sales will be paid back through either a credit card split or daily ACH withdrawal, and will continue until the advance has been paid in full.
The key advantages of a Business Cash Advance:
If you are eligible, capital is made accessible within a few business days, with considerable faster approval and funding turn-around time than traditional funding. Business Cash Advances are not loans and are paid back through daily future sales instead of in large monthly payments.
The daily percentage repaid is based on what business advance program you are approved for. If you are approved for a Merchant Cash Advance the payment adjusts, depending on the credit card processing batch-out for each day. Alternative funding companies usually create partnerships with card-payment processors, so payment is immediate and hassle free.
Credit scores are not the driving force for qualification, eligibility is based more upon the strength of a business than the business ownerߣs credit score.
Business Cash Advances are an alternative option to a Merchant Cash Advance when a business does not receive process credit/debit card sales. The main advantage of this type of advance is that the daily amount to be repaid is determined before the agreement is signed.
These alternative funding possibilities are not intended to be bailouts or venture capital investments for start-up companies, but are meant to be short-term accommodations for thriving businesses to reinvest in their growth instantly. As such, funds can be utilized for a variety of purposes such as renovation, expansion, software updates, employee education and increasing inventory.