Cash Advance for Business
In the past several posts we covered a variety of ways you can get the necessary cash to grow your business. From business credit cards, to revenue based loans to even using your 401k for funding to name a few. In this post we’ll cover something quite different.
Are you familiar with a merchant cash advance?
Now I know what you’re thinking so don’t worry, I’m not going to cover the typical merchant cash advance, remember I said this was something really different.
If you’re not familiar with a merchant cash advance, it basically provides a business with upfront cash in exchange for a portion of future credit card sales. Now if you ever had to deal with typical merchant cash advance providers you’re probably familiar with all the paperwork, merchant statements, costly fees, and waiting periods you have to deal with.
When a leading online provider of working capital known as Kabbage, told me it can deliver funds in 7 minutes; I decided to put that bold statement to the test. So I signed up one of my businesses online for free, linked its merchant account, bank account, and several social networks and within minutes, I had an approved cash advance line of thousands of dollars available right at my fingertips. No paperwork, no statements to supply, no collateral, and best of all – no waiting.
What I really liked about the whole process was not only how fast and how easy it was, but also the transparency of the terms and the ability to select the amount you need when you need it. There are no costs until you decide to access your money. Kabbage shows the exact repayment schedule, fees and terms in a simple chart based on the amount you select so you can know exactly what you are agreeing to before you take out an advance. Keep in mind all of this is done right online!
So how much does it cost?
Based on the average Kabbage score (Kabbage uses its own scoring model) it will cost you 12% of the advance amount. For example on a $10k advance you’ll pay $1,200 in advance costs. Repayment is not like other typical merchant cash advance companies where they take out a daily portion of your credit card sales.
Kabbage takes a monthly payment each month on a set date. Based on a $10k cash advance the repayment schedule would look like this:
You also have the option to qualify for a larger advance cash line if you add additional data sources. When I added two social network accounts my available cash line was automatically increased. You can add social networks, service providers such as Quickbooks & Google analytics, as well as stores you may have such as eBay, Amazon or Shopify.
Bottom line, the more data sources you connect the greater the cash advance line you may qualify for. After you connect the data sources you’ll see the cash that your company has available. If you decide to take an advance you simply select the amount, click on the ‘Get Cash’ tab, and the funds are instantly transferred into your account within minutes. It’s just that simple.
As you know having access to working capital is crucial for small businesses. By adding this advance cash line for your business you can have access to working capital online at any time at the click of a button. I believe it’s simply smart business for a company to have access to multiple sources of cash, credit, and funding.
Kabbage provides a business ongoing access to funds. With advance lines up to $100k, you can tap into your cash line anytime, for anything your business needs to expand. This is definitely not your typical business merchant cash advance provider; Kabbage is filling a need in today’s market and doing it better, faster, and easier than the competition.
Looking for other ways to get cash and credit for your business? Become a member of my Business Credit Insiders Circle and gain access to a proven step-by-step business credit building system. A system that provides you access to vendor lines of credit, fleet cards, business credit cards with and without a PG, funding sources and lenders that report to all the major business credit bureaus. Submit your name and email below for details and receive a free business credit building audio seminar ($597 value) =>
To Your Success In Business and in Life!
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About the author
Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. He is a business credit blogger for Dun and Bradstreet Credibility Corp, the SBA.gov Community, About.com and All Business.com. His articles and blog; Business Credit Blogger.com, have been featured in ‘Fox Small Business’,’American Express Small Business’, ‘Business Week’, ‘The Washington Post’, ‘The New York Times’, ‘The San Francisco Tribune’,‘Alltop’, and ‘Entrepreneur Connect’.