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How a Cash Advance Can Advance Your Business
Monday, January 21st, 2008
If your business runs into a cash flow problem at some stage (and many do, so you’re not alone), then you may wish to take advantage of a business-to-business cash advance, or B2B advance as it’s also known. The good news with a B2B advance as opposed to a more traditional loan is that you don’t pay the high interest rates, and it can be used for pretty much anything to do with your business.
For example, you may need to acquire extra funds for a business trip to meet an important new client, or pay for accommodation in a hotel. Whatever the reason for you needing extra emergency cash, a business-to-business advance can help out. So how do you go about arranging one?
Finding B2B Cash Advance Companies
Because the need for many businesses, especially small businesses, to have access to emergency cash has grown, there are now a whole host of companies that have sprung up to help you if this is the situation you find yourself in. You can find these companies by either doing an online search, or looking in the business pages of your local directory.
There are many companies to choose from, so you can ensure that you find one that’s more suited to your needs. Although they are there to help you, don’t just take the first one that you find - check out how much they charge and over how long a period.
How Much Can You Advance?
Depending on your needs and how urgently you need the money, a B2B cash advance will usually allow you between $500 and $3000. This can vary depending on what state or country you’re in, but this is a general average across the board. It’s also another reason why so many small businesses use a B2B cash advance as opposed to a dedicated business loan - there’s no need to take out a large loan at a potentially crippling interest rate, if all you need is a quick “booster”.
Again, the other good news is that it can be used for anything you want - a staff party, for example, or “sweeteners” for potential clients - anything. This is another big difference from many business loans, which often have strict guidelines on what you can use the extra money for.
Beware of Hidden Costs
Although business-to-business cash advances offer an excellent way for small businesses to be able to afford unforeseen costs or necessary purchases, like any type of “loan”, they do have their downside. There are a lot of B2B advance companies, for instance, who hide some pretty hefty repayment rates within their small print. Many other companies are sticklers for payment dates, and will incur penalties the minute these dates aren’t met.
Although normally it may be additional interest on the loan, there are occasions where this interest could be as much as 1000 times the amount of the advance. If you’re unable to meet this payment, you could even lose your business. So make sure you know all the details before you take advantage of a B2B cash advance.
Tags: advice, cash advance, cash flow, danny brown, fianance, small business, startup capital
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