With so many options, who do you pick?
With the wide selection of business cash advance lenders in the marketplace today, it might be difficult to find the right one for you. They all might seem to be the same, but the reality is we are all different just like any other businesses within the same industry. Let’s first start with the different type of facilitators. You have your local bank or credit union; neither IS known for doing business cash advance loans. However, they probably offer credit cards, which might be eligible for a cash advance. Now, typically credit cards have specific limits and those limits are determined on several factors of your personal credit. Here are just some areas the creditors consider before offering credit.
· Credit Scores
· Total Revolving Credit Being Used
· Total Available Revolving Credit
· Total Credit Cards w/ Same Lending Institution & All Subsidiaries
· Derogatory Credit, including late payments 30+ Days or More
· Previous Bankruptcy History
Not only are the credit cards restricted to the amount you can borrow, but they also require you the borrower to have good credit. Most lenders require proof of income for a business cash advance loan, but when taking a cash advance from your credit card, which is not a requirement. So the limited amount of paperwork is a huge plus, when using your credit card for a cash advance.
Can I get a business cash advance loan from bank?
Like I mentioned earlier, banks do not do these types of loans. But they do offer similar products like line of credits, which is similar to a credit card, but they typically can be for higher dollar amounts. In a previous post we spoke about the requirements for getting a loan from a bank. But here are some quick bullet points on getting a working capital loan from your local bank:
· 680 or higher credit score
· 2 to 3 years personal & business tax returns
· Personal & Business balance sheet
· They might want to put a lien on an asset (property, vehicle, or equipment)
Finally the last way to obtain a business cash advance loan is through a company like First Capital Business Finance. We are a private facilitator that specializes in non-traditional small business loans, business cash advance loans also known as merchant cash advance loans. We are not a bank, and we have different guidelines that will make the approval process easier for our customers. If you are interested in the business cash advance, our company only needs the last 4 months or merchant statements, our application and a copy of your photo ID. If you are interested in our working capital loan, we need the last 6 months bank statements, our application and a copy of your photo ID. From there we can have an answer to you as soon as 24 to 48 hours. If you have less than perfect credit, that isn’t an issue with our company. We underwrite and approve files based off your cash flow of the company. One thing that sets us apart from the other companies out there, we have absolutely NO UPFRONT FEES. So there is no cost to you or your business for your loan approval.
If you’re interested in hearing more about our business financing programs, please feel free to call First Capital Business Finance 888-565-6692 and one of our loan experts will be happy to answer any of your questions.