When you are running a small business credit card, there comes times when you go through tough economic times and you run short of fund. There are several ways to look for when you are in urgent need to manage cash flows.
You may consider option of taking business loans, but it is not easier to get loan approved as it requires good credit score as well as you need collateral. One other better way to find a quick funding is Credit Card Advance.
How Business Credit Card Cash Advance Works
Credit card advance is like a short term funds you take against you future credit card sales. Here you don’t need co-signer or balance in your account. You do have to pay some fees and charges. It is pretty easy to get cash to sustain your business. When you take cash advance on business credit card, you convert your future credit card sales into today’s cash flow.
You get advance cash which you will be paid back through your credit card sale. It involves very less paperwork and you get cash advance for a short period of time. You will have to make some agreements and have to pay certain interest to advance provider.
You get cash advance to run your business where your credit card sales act as your security. Until your cash advance is fully repaid, the lender will deduct from your future card sales through automated retrieval process. There are different methods on what amount you have to repay, it may be certain percentage or APR or it get multiplied by a constant factor rate.
Qualifications Needed for a Business Credit Card Cash Advance
To qualify for a business cash advance it is mandatory that your business is in operation over the last six months and all transactions are made through credit card. Moreover, the business owner needs to switch to credit card processing and sales system.
Benefits of Business Credit Card Cash Advance
Your business can get benefitted in several ways through business credit card advance. Some of the benefits are:
- Advance case offers a flexible way to increase cash flow to your business.
- The lender is paid back when you are paid by a client and that too after deducting a potion of it. You don’t have to make fixed payments such as monthly installments.
- It is quick money as it requires less processing time; you can get advance in couple of days.
- No collateral is needed as your credit card sale serves as security.
- You don’t have to pay any hidden fees.
- There are no restrictions on how you have to use the money.
- It doesn’t consider your credit history and as such poor credit doesn’t matter.
Though cash advance do have some risk associated, it can be a blessing when you need fund badly to sustain your business. You will get it to meet your urgent business needs without much hassle! Read more article on lookup.