A business cash advance is a short-term lump sum infusion of cash that carries a fixed daily or weekly repayment schedule based on your business’s monthly sales history.
Unlike a merchant cash advance, the repayment schedule does not fluctuate with your sales. Instead, it is repaid through regular ACH (Automated Clearing House) debits.
Though business cash advances typically come with high fees and factor rates, easy approval and fast funding make them an attractive solution for many businesses that find themselves in a temporary financial tight spot.
However, before you agree to a business cash advance, it is important that you are certain of your the ability to repay your loan according to schedule.
For some businesses, the high repayment fees can cause them to default or require refinancing. For this reason, business cash advances should only be used as a short-term financing solution.
If you accept a business cash advance, be careful not to stack business cash advances, it can lead to a debt spiral and make repayment not affordable.
* If you meet these general loan guidelines, you will most likely receive loan offers for this funding product. Loan offers are preliminary based on the information evaluated, final funding amount offer may be adjusted during final underwriting.
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