To apply for, and to be eligible for a business loan, you need a valid business plan, your personal and business financial statements, securities, and guarantees. Additionally, a good credit rating is required, not only from you but also from all stakeholders of your business.
Another option is to take assistance of a cash advance option. If you do not qualify for a traditional loan program¸ you can get cash advances from various merchants and credit unions. In this case, the loan disbursement is quick and easy. You do not have to pledge any collateral, show any tax record, pay any credit application fee, and you can have a less than perfect credit history. Once the application is approved, the funds will be transferred into your checking account within one business day.
· The interest rates are high due to the lack of a credit check. The risk factors for a lender are high due to this factor.
· The charges vary from one loan to the other, even if you are securing your services from the same lender.
· Due to a fixed payback percentage, your payoff is on the higher side and depends on the number of credit cards sales you do every day.
· Also remember start ups are generally not funded with the help of a cash advance.
· Loan amounts are generally not high.
· The payback time is shorter in comparison with traditional loans.
As with any loan program¸ always read the fine print before opting for a cash advance loan.