Securing a Cash Advance when Traditional Business Loans are Unavailable

• Quick Access to Funds: Rapid access to capital, providing timely support for operational needs or expansion costs
• Flexible Repayment: Tied to daily credit card sales, allowing businesses to navigate fluctuations in revenue
• No Impact on Credit Score: Not reported to credit bureaus, offering advantages for new businesses or those with limited credit history or poor credit scores

In the dynamic landscape of business financing, understanding the distinctions between cash advances and traditional loans can be crucial for business owners, especially those venturing into new territories or seeking expansion opportunities.

Flexibility in Funding

Cash advances offer flexibility, allowing businesses to access funds swiftly and conveniently.

To obtain a small business loan, the number of years in operation and the size and industry of the business are important factors affecting loan approval. Credit scores, revenue and profits, and cash flow also play a significant role in determining loan approval.

Unlike traditional loans, where the approval process can be lengthy, cash advances provide a streamlined application process, ensuring business owners can quickly secure the funds they need.

Credit Score Independence

For new business owners or those looking to expand their operation, maintaining a strong credit score might be challenging. Cash advances are not heavily dependent on credit scores. Instead, they consider factors such as the merchant’s cash-credit ratio, existing debts, and overall business performance, providing opportunities for businesses with varied credit histories.

No Fixed Interest Rates

Unlike traditional loans with fixed interest rates, cash advances typically involve a flat markup on the borrowed amount. This structure offers more predictability for businesses as they repay a set percentage of their daily card sales, making it easier to manage cash flow during both slow and peak periods. The repayment for a cash advance involves a flat markup, typically ranging from 10% to 30% of the borrowed amount with no traditional interest rate; for instance, if a business borrowed approximately $5,000, the repayment could vary between $5,500 and $6,500, depending on their credit, and the merchant generally pays back the borrowed amount within 6–12 months.

Ideal for Quick Expansions

For businesses planning to expand, especially when opening multiple locations or for chains, the agility of cash advances becomes a significant advantage. The quick approval and disbursement process enables business owners to maximize growth opportunities promptly, ensuring they stay ahead in competitive markets.

At MONEXGroup, we cater to diverse business needs with our payment solutions. If you’re a business owner in the early stages of planning expansions, let’s talk about your options. For example, Clover Capital provides a convenient and flexible financial solution with simplified approval, flexible repayment, and no impact on your credit score. Contact us today and discover how our solutions can benefit your business.