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Small Business Cash Advance vs. Small Business Loan
Business Cash Advance
Most retail storefront businesses and restaurants that have been in business over one year, usually accept credit cards as a form of payment. Rather than using personal collateral (such as your home), you will sell your future credit card receivables at a discount to our business cash advance investment partners. This is similar to a factor company, except it uses your credit card receivables rather than business to business invoices.
The Business Cash Advance Investment Company purchases your credit card sales depending on certain predetermined qualifications. Because they purchase your credit card receivables, it is not considered a loan. Even though there is no interest rate or monthly repayment terms, this is not a grant either
The business cash advance investment companies are repaid through your future Visa and MasterCard credit card sales. You keep 100% of your cash, checks, American Express, Discover and other form of payment acceptance. There is no fixed monthly payment schedule. Payment is automatically deducted each time you have a Visa or MasterCard sale. There are:
No Fixed Monthly Payments
No Late Payments
No Harassing Collection Calls
Unlike venture capitalists, family and friends, we do not take equity ownership of your business. Best of all, you can use the money for any business purposes. Our clients have used the money they received from us for payroll, taxes, emergencies, inventory, new equipment, remodeling and expansion.
Why is it called a Business Cash Advance and not a Business Loan?
When a bank makes a business loan, it is regulated by state and federal government regulators. There are specific rules and regulations they must follow. Should they not follow those guidelines, they risk heavy fines, reduction of credit ratings and possible receivership (otherwise known as bankruptcy for a bank).
Rather than lend you money like a bank, we purchase your future credit card sales at a 20-33% discount. A monthly percentage of future sales are used to determine repayment. There are:
- No bank loan repayment schedules
- No monthly invoice statements
- No penalties and no late fees
How about rebuilding a positive credit rating with little effort! Repayment occurs automatically and follows your business revenues. We don't get paid unless you do! We invest in your business. This is not a loan or a grant, it is an investment.
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