A business cash advance is lending that allows you to borrow from your small business's future income to access the capital you need today. It comes in different forms, but the most common one is the merchant cash advance, also known as a revenue loan, turnover loan, or revenue-based financing. Cash advances are funded much faster than other types of financing, making it the most dependable lifesaver for businesses needing fast access to funding.
How Does a Business Cash Advance Work?
Using a standard business loan, you get a lump sum at the start of your loan term. You'll then pay interest for as long as you pay the amount owed. This concept applies to loans, revolving credit facilities, overdrafts, and many other financing types.
Additionally, when you use a loan, the total cost of the finance, such as the interest you owe on top of the principal lump sum, varies on how long you take to pay the loan back. This means that instead of having a constantly “running” interest, the total finance cost is agreed upon up-front.
When to Consider a Cash Advance
Cash advances are most often recommended for:
- Businesses with Low Credit Scores
- Newer Businesses with Limited Credit Histories
- Businesses That Need Cash Quickly
In case you need a fast business cash advance, contact Clark Commercial Brokerage, LLC.