Unsecured Business Cash Advances

Introduction To Unsecured Business Cash Advances

The world of small business is flourishing in America more than ever. Statistics have shown a steady increase still ongoing for the launch and success of small and large businesses. (see business stats here) The other side of that is the need for small and large unsecured business cash advances. As we all know, banks can be extremely inflexible when approving small or large business loans, especially when the business does not have substantial assets (or assets the banks consider substantial) in which to use as collateral. This inflexibility of the banks and their lending/financing managers has given rise to the business cash advance market. 

In this post we will be covering some of the characteristics of the average unsecured cash advance deals available to small, large, and medium sized businesses. We will also be including an application form for small and medium sized businesses who require cash advances.

Characteristic advantages of quality unsecured business cash advances:

• no application fees
• no hidden fees (if you get the advance from a reputable lender)
• no closing costs
• no financial statements
• no tax returns
• no fixed payments
• no credit checks

Characteristic disadvantages of some unsecured business cash advances:

• high application fees
• hidden fees in the small print that add up to hundreds/thousands of dollars
• high closing costs that are often hidden in the contract
• your business financial statements are open to the business cash advance provider
• your tax return data and information is scrutinized
• high fixed payments every month regardless of your business cash flow
• personal credit checks and business credit checks
• personal guarantee for the business cash advance loan amount

Stipulations of unsecured business cash advances from a favorable lender or financier:

There are stipulations in an unsecured business cash advance that have to be honored even with a reputable cash advance lending company. You want to have a lender that is flexible and sensitive to your monthly traffic volumes and cash flow. You do not want to be stuck with a hefty payment every month when your small or medium business has slow or seasonal months to contend with. Below is a short list of what you can expect you setup a business cash advance deal.

• most business cash advance companies require that you accept Visa and/or Mastercard as a form of payment 
  Why? They are paid back with a trickle of your credit card transactions. 
• business cash advances companies usually require that your business creates a cash flow via credit card over $2000
  Why? Because they need to see you have a threshold volume of cash flow via credit card to make sure they can be re-paid within a reasonable amount of time.
• most cash advance lenders won’t advance your business capital if you have any unresolved bankruptcy issues
  Why? For obvious reasons so that your business is clear and free of collectors.
• usually business capital advances are only granted to people who have been running a business more than a year 
  Why? They need to know that you have been successfully running a business for some time so they can re-coup their investment.
• the lion’s share of capital advance companies won’t approve money to home based businesses
  Why? They need to know that you are not going to up and dump your business at a moment’s notice. They want to know you are serious about creating profit from your business into the future.

Statistics Of Small and Medium Business Cash Advance Amounts:

Statistics show that most small and mid-size businesses procure cash advances ranging between $40,000 and $80,000 dollars. Of course there many that only require $2000 to $5000 or $10,000. Most capital advance lenders will top off at $250,000 dollar loans. This why most large companies will never require this kind of capital. They will be using angel investors, banks, and venture capitalists to finance large sums of money up into the millions of dollars.

Precautions to take as small or medium business owner procuring an unsecured cash advance: 

It’s important that a business owner/operator ensure that the capital or cash advance is going to good money towards a profitable venture. You need to be fairly certain that the new influx of capital is going to pay off in the way of further profit and further growth. If you do indeed manage your business well enough to create a strong cash flow in the future, you will easily pay off your business cash advance, and it’s all good. 

If you do not use the business capital advance prudently, you will be paying down the debt slower and the interest you pay will be larger (of course). 

How unsecured cash advance companies get re-paid:

There are various ways in which unsecured cash advances are paid. Some lenders simply require a payment be made once a month or once a business quarter. Some require payments bi-weekly and with large fees associated with the payments. You must avoid these contracts or deal of course.

Some of the more flexible and organized unsecured advance lenders simply take a percentage of the credit card cash flow your company generates over the month. This way you are not stuck with more fees and large payments every month even on slow cash flow months.  

How quickly can you be approved for unsecured business cash advances:

Experienced cash advance companies can have you approved for business capital within 48 hours of applying, and they can have the funds in your business account within 10 days. This is a basic average for the capital lender’s that really have their funding process fine tuned. 

Which sites or companies do I recommend for for unsecured business loans and/or advances:

I don’t make commissions from recommending people in the financing arena, but I did ask one of my blog friends (Kenny Allman at Money Traffic) to do a some research on unsecured cash advances for small and mid-sized businesses. He agreed to do the research and post (non-profit) links to sites of companies that provide all of the positive criteria mentioned in this article.

The criteria I gave Kenny was as follows:

A Financing Company That Provides Small and Medium Business Loans/Advances and they must……. 

• have no application fees
• have no hidden fees
• have no closing costs
• don’t poke their nose into your financial statements
• don’t ask to see your tax returns
• don’t have fixed payments
• don’t do personal or business credit checks 
• must judge a company from it’s future business plans
• must approve within 48 hours, and deposit funds within 10 business days
• must lend between $2000 and $250,000 US dollars 
• must have a solid track record of providing unsecured capital to viable businesses
• must have personable customer service 
• must be based in the United States 

Kenny’s Unsecured Business Capital Advance Study And Results:

Well Kenny finally got to it and finished his research. He explains in detail on his blog in his article Unsecured Business Capital Advances, all of the criteria he used in his phone calls and Internet surfing. He has some links provided with online forms for consultation and applications. He promised that these would be non-profit links as well, so as to not influence his outcome based on who may pay him a finders-fee, commission, or brokers fee. (like he needs anymore money…)

Click here to see Kenny’s Post on unsecured capital advances for small and mid-size businesses. 

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