What Is a Business Cash Advance

People around the world are becoming tired of their “9-5” jobs. Because of that, they are looking for some other ways to earn money. The most popular method to achieve a goal like that is entrepreneurship.

Fortunately, living in a world of advanced technology brings many benefits. Starting a business in today’s world is easier than ever before. With a high dose of creativity and a stable Wi-Fi connection, starting an online business isn’t a problem.

Yet, it doesn’t truly matter how you plan to start the entire process. Despite that, it is also irrelevant in which industry you want to work with. Starting a business without an initial capital is impossible. You will need to have money to invest in different aspects of your business. That is the main reason why people give up in the end.

The good news is that the solution to that problem exists. Have you ever heard about business cash advance? In case the answer is “no”, you came to the right place. We will explain to you what is a business cash advance and everything important around it.

Source: First American Merchant

Introduction to Business Cash Advance

The purpose of this article is to make things clear to you. Because of that, we will try to explain things most simply. A business cash advance is also known as a merchant cash advance. Despite that, some people also like to name it as account receivable factoring. All these names refer to the same thing.

The purpose of the business cash advance is to give business money in return for a cut of future sales. In other words, you are not getting a loan because you are selling your future sales.

In most cases, the repayment starts immediately after you get the business cash advance. The provides of that service debit your bank account daily or take a portion of the ongoing sales.

Benefits of Business Cash Advance

You now know what business cash advance is and how you can use it. However, we believe that explanation like that is not motivational a lot. People are confused when they plan to start a business. That especially counts if you are a first-time entrepreneur. There are many things you should worry about and you invest a lot of effort not to make certain mistakes.

First-time entrepreneurs need to understand that making mistakes is part of every business success. However, we need to say that applying for the business cash advance is not a mistake at all. You will manage to get certain benefits if you decide on this move.

Source: Fit Small Business

Money Will Come Quickly

The good news is that money will be on your account quickly. In most cases, you won’t need to wait for more than a week. Every entrepreneur knows very well that “time is money”. Because of that, timing is one of the crucial factors for getting business cash advance. The first-time business owners are not the only ones who need money. Well-experienced entrepreneurs need that type of help as well in some cases. Improving cash flow in a short period can be an amazing benefit for them.

When we talk about speed, applying for a business cash advance is also not complicated. Believe it or not, you will manage to do that from the comfort of your room. For instance, business funding providers like PDQ Funding allow people to apply for a business cash advance on their website.

Impeccable Credit Score is Unnecessary

Getting a bank loan is not as easy as you might think. Your credit score needs to be good to get a service like that. On the other hand, chances to get a business cash loan are higher. Even if your credit score is not “handsome”, you can still apply for it.

Cash advance providers have a bit different requirements. They will require that you make a certain amount of money each month. If you manage to do that, everything around this service is going to be fine.

Source: Funders Corner


Let’s once again imagine that you are the owner of a small business. Whichever loan you try to get, there will always be certain limits and restrictions. Having the freedom to spend money however you would like is not possible. Because of that, finding a funding source that meets all your requirements and expectations is almost impossible.

Things with business cash advance are different. The freedom to make decisions on how you will spend the money is the main reason why this service is popular. In other words, cash advance providers will never tell you how you will spend your money. Many entrepreneurs want to use this opportunity to cover different types of costs. For instance, you can spend one part to pay off debt, and the remaining money can go on marketing campaigns.

It Isn’t Too Risky

As we said, most of business financing services will have certain requirements and restrictions. In most cases, the requirements they have are a bit risky for entrepreneurs. They can, for instance, ask from you to put your financial health on the line. A good credit score is not the only thing that should bother you. Banks and similar providers will always check the history of your business behavior.

Putting your assets on the line is unnecessary in this case. As we said, cash advance support is a sale of future revenues. Everything depends on your sales which makes things easier for every entrepreneur.

Source: US Fund Source

In The End – You Are Not Borrowing Money

To conclude, entrepreneurs that decide on business cash advance are not borrowing money. The only thing you are doing is selling the part of your profit in the future. At first glance, even that opportunity might seem a bit risky for entrepreneurs. However, when you look closer, it is a much better opportunity then exposing your financial health to different risks.

It doesn’t matter if your sales were not that good in the first month. Even then, you will only be remitting a smaller amount of money.

We believe that our explanations are enough to give you a clear picture of what business cash advance is. The advantages are there to confirm that you won’t make a mistake if you decide on this move. Be creative, invest the money you get correctly and major problems won’t exist.

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