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A business cash advance is a form of receivables factoring which gives you money upfront for your business’s future, unprocessed credit card sales. So your business’s sales history is much more important than your credit history when it comes to approving your advance.

Most businesses can get between one and a half to two and a half times their monthly credit card sales in about a week. It is paid back using a small percentage of your daily credit card sales. The payback process takes anywhere between 6 to 9 months and because this is done automatically through your credit card processor; there are never any monthly bills or late charges.

A business cash advance (or merchant loan) is designed specifically to help small businesses that are suffering with credit issues get the money they need to maintain ad grow their business. Even if you’ve been turned down by the banks; there is a good chance that you can get funded with a merchant loan.

Continue reading ‘Why is a Business Cash Advance Considered a Bad-Credit Business Loan?’ »

Trying to get cash for your business when you have poor credit isn’t as difficult as it used to be. It used to be that if the bank turned you down for a loan, there weren’t many options available. That has changed in the past few years since the business cash advance was introduced.

The idea is pretty simple; eliminate a lot of the risk associated with loans and you are able to fund a greater number of people. In fact; some cash advance providers can approve nearly 95% of all businesses who apply. That is a pretty staggering number when you consider that banks only fund about 10%.

How does a business cash advance work?

Rather than relying on your credit history, they look at your sales history as the basis of the advance. More specifically your businesses credit card sales. Once they determine a monthly sales average; they advance you money based on that monthly average. Once you are funded; your credit card processor is set up to automatically use a percentage of your credit card sales to pay them back.

Continue reading ‘Who Says You Can’t Get a Business Loan With Bad Credit?’ »