The current economic crisis has seen business cash advance for small business emerge as a new financing source, taking the small business industry by storm. Business cash advance, also called merchant cash advance is a fast, reliable and low-risk financing source that provides small businesses the capital to maintain cash flows or for business expansion. It is like a line of credit, but better! Business cash advance companies recover the credit card cash advance by taking a percentage of the future credit card sales receivables.

Business cash advance is more business-friendly than a line of credit or small business loans and grants. Government grants and loans for small business have long approval cycle times and a strict verification process that works against the small business’ financing needs. Weekly cash flows are the lifeline of every small business. However, the credit squeeze during this great recession is making it very difficult for small business to keep the lights on. Small business cash advance provides an instant boost to get a small business back on its feet.

There are many advantages to taking a small business cash advance:

Faster processing time

The time span between the start of the application and disbursement of business cash advance is very short. Business cash advance companies consider the months you have been in business and the average monthly credit card sales of your small business while determining your eligibility for a small business cash advance.. If you have been in business for over 1 year and have atleast a 6 month history of credit card sales your small business can be approved for a business cash advance within 24 hours.

Simple application

Applying for a small business cash advance is easy. Unlike government grants, lines of credit and loans for small business, business cash advance companies do not ask for income tax returns, asset documentations, financial statements or a business plan. There is minimal paperwork required as the only verification a business cash advance company needs from a small business is the length of time it has been in business and the average monthly credit card sales. Many business cash advance companies will also waive the application fees and closing costs. The cash advance for small business application can be completed and submitted within minutes. Some business cash advance companies even have an online system for submitting the application.

Unconditional use of funds

Business cash advance merchants do not impose any conditions on the use of the cash advance for small business. Small businesses can use the business cash advance for cashing in on a business expansion opportunity, paying bills, personal expenses, or any other purpose. This is unlike small business loans or lines of credit that have stipulations attached to them.

Fast and easy approval

It is not easy for small and mid-sized businesses to get approval for government grants and loans for small business because financial institutions and banks give a lot of importance to credit scores. Business cash advance merchants make it easy on the small business owner by focusing on the business' performance rather than its credit history. The amount approved for the small business cash advance is typically based on the volume of monthly credit card sales of the small business.

No collateral required

Business cash advance merchants do not need to secure any collateral from small business owners for the loan. Therefore, small business owners do not have to risk losing their personal assets if the small business goes under. Credit card business cash advance is an up-front payment for a percentage of the small business' future credit card sales revenue. The success or failure of this deal does not affect the credit rating of small business.

Timely repayments

A small business owner agrees to remit a percentage of the credit card sales receipts to the business cash advance merchant by signing a contract. The credit card processing company executes on the contract agreement by deducting the percentage from every future credit card transaction and sending it the business cash advance merchants bank account automatically. This ensures that the business cash advance merchant receives timely payments, while the small business owner is free of tracking payment due dates, signing monthly checks and other paperwork.

Revenue-based repayments

The payment amounts vary based on the performance of the small business’ credit card sales. The business cash advance merchant will see good returns when the small business is seeing high credit card sales receipts and low returns when the small business is seeing slumping credit card sales. This makes the business cash advance company a true business partner by sharing the risk and rewards of the small business.

Business cash advance makes it possible for small and mid-sized businesses to keep the lights on during this great recession. The inflexibility, risk and long approval cycles of small business loans and grants is making more and more small businesses turn to business cash advance for their financing and cash flow needs.