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Business to Business Cash Advance- Helping Small Businesses to Grow
Business to business cash advance is one of the favorite options of small businesses because of
the fast processing time. Business cash loans are preferred over bank loans and it is the best
way for small businesses to get required financial capital for their business.
Financial capital is the first requirement of every business. With the present economic
downturn throughout Europe and sloppy economy in USA, it’s almost impossible for small
business owners to get required funds for running their business. Generally most of the bigger
firms enjoy long-term relationships with banks and other investors which make it easy for them
to get financial aid during a tight cash flow situation. But smaller businesses find it really hard to
get the required credit in time of need. In past few years, business to business cash advance has
emerged as the favorite choice of
small business owners. The main
reasons behind this popularity
are instant approval and minimal
credit checking involved in the
process. This article will discuss
various aspects of business cash
advances.
What is the working principle
behind business cash advance?
Cash advance works in the same
manner as that of invoice
factoring. The process of invoice factoring involves selling of sales ledger or a specific part of
the sales ledger to a group of funders or individual funders. It provides immediate cash to the
company and the sales funder gets paid when the pending ledger invoices of the company are
settled.
With business cash advances, the business sells its revenue stream that will be received by
future credit card receipts against the business. The process starts by evaluation of sales from
credit cards for a given period of time and a certain portion of this amount is paid to the owner
as cash advance. The funder receives the money from those sales after they are made.
In both of these cases, there is a fee involved depending on the amount of cash advance which
is charged by the funder. Depending upon the terms of the agreement, fee amount and other
costs vary accordingly. The rate of interests depends on the level of risk and flexibility offered
from the funding group.
Major issues involved in business cash advance!
There are a lot of advantages of businesses using cash advances as compared to regular bank
loans. These are easily available to new businesses and a business need not to have a strong
credit history to get approval for business cash advance.
Another important factor is the amount of flexibility offered in business advances. The
repayments are generally decided according to the current business and initial payments can be
made quickly. The business owner has the advantage of making quick repayments in case of
fast business.
But the overall cost of the business advance is much higher than regular bank loans. It is
important that small business should consider business cash advance as initial funding only and
these should not be preferred for long term financial requirements. Business cash advance
offers the advantage of quick funding but like any other financial agreement, business owners
should not enter into it lightly.
Business to business cash advances for quick and easy funding for small-business owners in a
tight credit market can be an easy thing to get accomplished these days! Get more information
here: www.einvoicefactor.com
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Business Cash Advance Working Capital

  • 1. Business to Business Cash Advance- Helping Small Businesses to Grow Business to business cash advance is one of the favorite options of small businesses because of the fast processing time. Business cash loans are preferred over bank loans and it is the best way for small businesses to get required financial capital for their business. Financial capital is the first requirement of every business. With the present economic downturn throughout Europe and sloppy economy in USA, it’s almost impossible for small business owners to get required funds for running their business. Generally most of the bigger firms enjoy long-term relationships with banks and other investors which make it easy for them to get financial aid during a tight cash flow situation. But smaller businesses find it really hard to get the required credit in time of need. In past few years, business to business cash advance has emerged as the favorite choice of small business owners. The main reasons behind this popularity are instant approval and minimal credit checking involved in the process. This article will discuss various aspects of business cash advances. What is the working principle behind business cash advance? Cash advance works in the same manner as that of invoice factoring. The process of invoice factoring involves selling of sales ledger or a specific part of the sales ledger to a group of funders or individual funders. It provides immediate cash to the company and the sales funder gets paid when the pending ledger invoices of the company are settled. With business cash advances, the business sells its revenue stream that will be received by future credit card receipts against the business. The process starts by evaluation of sales from credit cards for a given period of time and a certain portion of this amount is paid to the owner as cash advance. The funder receives the money from those sales after they are made. In both of these cases, there is a fee involved depending on the amount of cash advance which is charged by the funder. Depending upon the terms of the agreement, fee amount and other costs vary accordingly. The rate of interests depends on the level of risk and flexibility offered from the funding group.
  • 2. Major issues involved in business cash advance! There are a lot of advantages of businesses using cash advances as compared to regular bank loans. These are easily available to new businesses and a business need not to have a strong credit history to get approval for business cash advance. Another important factor is the amount of flexibility offered in business advances. The repayments are generally decided according to the current business and initial payments can be made quickly. The business owner has the advantage of making quick repayments in case of fast business. But the overall cost of the business advance is much higher than regular bank loans. It is important that small business should consider business cash advance as initial funding only and these should not be preferred for long term financial requirements. Business cash advance offers the advantage of quick funding but like any other financial agreement, business owners should not enter into it lightly. Business to business cash advances for quick and easy funding for small-business owners in a tight credit market can be an easy thing to get accomplished these days! Get more information here: www.einvoicefactor.com Google Plus