Which One Is Better: A Business Cash Advance or a Bank Loan?

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When you need cash, especially if it’s an emergency, you have a lot of options to get the money you need. A bank loan is sometimes difficult to obtain, especially if your credit score is low or you have no collateral or security. Cash advance companies are another option, even though some people have the incorrect impression that they are difficult to get loans from. If you need cash, what are you supposed to do? Which option works best, particularly if you need the cash for business or commercial purposes? Both cash advances and bank loans have their pros and cons. It is best to first determine the specifics of your particular situation so that you can choose which one will work best for you.

Bank Loans

Bank loans are good because these days, their annual percentage rates (APRs) are usually competitive and low. They can usually offer loans that are stretched out over a number of years, which allows you more time to pay them back. In addition, they have excellent advisers that can help you with every aspect of the loan process, to make sure you receive the rates and repayment schedule that works best for you. They can even custom-design a loan just for you, which makes you feel more in control and allows you a more convenient repayment plan.

Business Cash Advances

Businesses sometimes need extra cash for the purposes of hiring more personnel, adding to or renovating a facility and for cash flow purposes. Many cash advance companies will work with any business that has been operating for a little while – find out more here – and offer reasonable rates and generous loan amounts. One of the main advantages of using a cash advance company is that there are no hidden fees, fixed monthly payments or APRs. They usually lend you the cash, often between £5,000 and £100,000, and you pay them back by giving them a percentage of your debit and credit card sales each month. This means that if your credit and debit card sales are unusually low one month, you pay a lower payment amount to the advance company. It is a win-win situation for both the business and the cash advance company.

Since bank loans are sometimes difficult to get, many people are choosing cash advance companies instead. Cash advance companies are professionals that offer quick cash and very simple repayment options. No business plan or security is needed, and you usually receive a response within 24 hours. In addition, most businesses – up to 90% of them – end up qualifying for these types of loans. Also, it is very quick to receive a cash advance loan. Simply go to one of these companies’ websites, enter a few pieces of basic information, and click on the Return button. Within hours – usually less than a day – you will receive a response from the company. Afterwards, you will receive your cash quickly, which ensures that your business will continue to grow and be around for awhile.