How Do Business Cash Advances Work?

When your business is in a financial bind, you might think that taking out a long-term loan is your only option.

But getting into a monthly payment with high interest rates that you’re stuck with for a long period of time isn’t always the best solution for a short-term problem.

A cash advance, or Business Cash Advance, is not a loan, so it’s easier to qualify for.

It’s an advance on your future sales based on an amount determined by your current financial needs, your recent and past sales, and your annual revenue.

Cash advance repayment terms will depend on the lender and borrower agreement, but they generally are repaid as an automatic withdrawal of a percentage of your debit and credit card sales or a percentage of your daily deposits.

Because of the variable of your daily sales, the payments will be different until the terms have been satisfied.

But it works well for the typical small business owners because on slow days, your repayments are lower, and on busier days, your repayment is higher.

However, there is no fixed timeframe to pay back the cash advance because of the uncertainty of your daily sales.

Again, this is only one type of financing available to you as a business owner.

That’s why having your own Custom Business Funding Plan is very important so you know what your options are and what the best loan type is for your particular needs.

So click the button below to request your custom plan and we’ll get started on it ASAP! Remember, there’s no cost for the plan!