subject: Business Cash Advance - Greatest Benefit Is No Collateral Needed [print this page] Are you apprehensive that the worldwide credit crisis will leave your business in dire straits? Is a lousy credit history preventing you from get business financing? Are you afraid of losing your home and personal assets if you get a commercial loan? How would you like to avail a funding alternative that is not only fast and hassle-free but also unsecured? If you can relate to any of these questions, then you should give a serious thought to business cash advance or merchant cash advance.
Pledging your home or vehicle as a security for a business loan
Although home equity loans offer low interest rates, drawn out repayment terms and tax deductible interest reduces their practicality for small businesses. If your business plans don't work out, you stand to lose your home.
Similarly, when you pledge vehicles as security, you give your lender possession of vehicle's title. In case you fail to make your loan installments and your loan defaults, lender has the right to take over ownership of your vehicle. Pledging collateral is fraught with risk in a financially unpredictable environment. With business cash advance, you can bypass this pitfall altogether.
How can business cash advance providers offer an unsecured advance?
Pledging a security has been a necessary part of the business of loaning money since its inception. They are a lender's protection against default. How then can business cash advance providers not need the security of a collateral?
Let's go into what makes business cash advance funding successful without a collateral. First, in the interconnected and easy-access internet age, it is simple for providers to tell apart genuine borrowers and creditworthy businesses from those going downhill. To evaluate your eligibility, lenders check your credit card sales receipts, which can be accessed easily and verified. The second reason is that repayment is not a choice after you accept the contract. Since installments are deducted automatically at the credit card processor's end, lenders are pretty much covered.
Great thing about this type of loan is that the providers do not charge you more than you can afford. As specified in the contract, a predefined percentage of your monthly credit card sales receipts are paid out to the provider. This functions well as your daily repayment is reduced when sales are sluggish and do not turn into an unnecessary burden.
Matching funding solutions to business situations
While a home equity loan may be more suitable in a few scenarios, business advance is the best fit when you are looking for low-risk, speedy and hassle-free financing.
Tougher loan approval cycles post the recession and zero collateral makes these loans perfect for stressed small and medium-sized businesses. It is senseless to depend on slow and unsafe banks loans when superior options are on hand. Business advance is the newest advancement in commercial lending. Remember, no collateral is a good thing in funding and business cash advance is the current leader in current economic crisis.
by: Daljeet Sidhu
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