Getting a loan for your business can be an arduous affair, especially if you do not have a stellar credit history to support it. What makes it worse is that even many new businesses fail to get the loan because they have no history to prove their ability to pay. The only alternative that most business owners see is loan sharks, people who are willing to give money to practically anyone but with extremely strict terms and conditions.
Thankfully, there is a third category too that is becoming increasingly popular. These companies, just like ours, can provide decent loans for decent rates to people who may not be eligible for a regular loan. Of course, in our case, the services cover all the common borrowing and you can find some reasonable rates too if you need a cash advance for your business. To find out all the different cases where you can get a cash advance, keep reading.
1. Startup Businesses
If you are trying to start a new business and you need a cash advance, you will get a loan that will help you build your business. With this kind of funding, you are not only getting the money, but also the business expertise of the people providing you the money. Cash advance is not an option in this scenario since you need assets to get the advance but the loan itself, along with the business experts, can be a great place to start your business and keep it going.
2. Companies with Bad Credit Rating
Any company with a bad credit rating knows how impossible it is to secure funds for your business from traditional loan agencies. They are reluctant to give you the money as they fear you might lose it. They also have plenty of other much safer options to choose from, so they do not see any incentive in giving your business any money. In such a scenario, a merchant cash advance can be a great option as you can get it immediately by giving away some part of your sales to the lender along with an additional fee at the end. This can even be a repetitive cycle for many companies who need a constant influx of cash to keep running.
3. Companies with Large Assets
There is an entire field dedicated to serving companies that do not have the capital to spend but have large assets in their ownership. The solution is equipment financing, where the company can get the money they need by putting in equipment that they have as collateral. This is also an option for companies who want new equipment but do not have the money to pay for it. In that case, you can find some of the best deals and lowest rates since the lender puts the equipment that you are buying as the collateral against the loan, along with some additional fees at the end.
4. Seasonal Businesses
This is also a type of business where getting a traditional loan is not feasible at all. Given the fact that they only operate at their full capacity a few months of the year, paying regular installments the entire year is not a great idea. Therefore, merchant cash advance is a great solution for these businesses as you can get the money when you need it and use it during your active months, pausing it during the off-season when it is not needed.
Conclusion
All these solutions are for you to try out and figure out which one suits your needs the best. If you have any thoughts to share on finding a cash advance, please let us know in the comments below.