When it comes to getting a credit card cash advance for your business there are many things that you should first understand. Knowing how much you need, along with how you plan to pay the loan back are only the first steps in understand exactly what an advance will do for you, and your business.

What exactly is a business cash advance?

The way an advance like this works is you borrow a certain amount (typically up to 100% of your monthly credit card sales), and slowly repay the loan using future credit card payments. In other words, this is not exactly a loan, but its an “advance” on the future payments made to your business.

Here is an example:

Company A does $10,000 a month in credit card sales. They need some immediate funding in order to purchase new equipment. They apply, and receive $10,000 to fund their project. Every month there will be a percentage taken automatically from the credit card payments made to Company A.

The repayment time, interest, and some other factors will depend on the lender that is being used.

Uses for business credit card advances:

• Purchase new equipment
• Hire additional employees
• Remodeling
• Purchase inventory
• Pay off other debts
• Start a new location
• Offer a company promotion

The fact is that most advances can be used for just about anything. When you are applying there is almost nothing you can say (as far as what the advance is for) that will make it more difficult to get the money you are seeking.

Terms and conditions:

Most lenders will require you to submit 4 months of previous merchant statements. A business plan is almost never required, and you will rarely be asked for a proposal or in what areas you are going to use the funds. There are no fixed payments. Each month a percentage will be deducted from your credit card sales until your advance is paid back in full.

How to get a business cash advance:

There are many lenders that specialize in this type of lending. The good news for you is that paperwork is limited, and the turn around time is usually within 2 weeks. Out of all the companies we know, they all say that clients receive a response within 48 hours of submitting their application. As always terms, and approval times will be based on the lender that you have chosen. Although we are not a lender, we are willing to help you find the right company. This loan is not for everyone, and you should perform thorough research, and read all paperwork before agreeing to any funding.

Requirements:

The only requirement in most cases is 4 months of merchant statements. There is no need for a business plan, tax returns, or any other lengthy paperwork.