Businesses are constantly looking for working capital so this isn’t something that you will only contend with during the initial phases of your company’s growth. Once your business has opened its doors, the need for working capital will remain for various reasons including the need to expand your company and to keep it running in a smooth manner. In order to secure the working capital that you need, a business credit card loan – which is also regarded as credit card advance -may be one of the best options available to you. In addition to business credit card loans or cash advances, another option is a standard business loan, but these tend to be harder to qualify for. It is important that you consider the differences between these two types of financing and whether or not business card loans are a smart decision worth considering for your business.
Most loans that come directly from the bank are going to require collateral or a credit score of around 700, and your business will have to have been in operation for two to three years and have a solid credit history. There are downsides to traditional bank loans, including having to schedule appointments, making pitches for loans and presenting your business plan to lenders, and so on. In order to get a card advance, on the other hand, you do not actually need to have a great FICO score. All that is generally required for business credit card loans is proof of income and proof that your business has been open for a minimum amount of time – which is measured in months instead of years. If your business has tax liens, unresolved bankruptcies or other credit issues, you may be disqualified when you apply for a merchant loan approval.
There are many benefits associated with cards, so it has become quite common for business owners to overlook bank loans in favor of cards. If you want to improve your business credit and grow your business so that it may become more profitable over time, then you should consider using credit card business loans instead of traditional merchant loans because they work much in the same way. Business loans tend to take quite a while to process, but cash advances through business credit cards can be nearly instantaneously. This is because if you have already been approved for the credit card, then the card company already trusts you and trusts that you will repay the loan on time.
Business card cash advances also offer flexible payment schedules which make them better than traditional business loans or merchant loans. Because, as a business owner, you many have a relatively unpredictable income on a monthly basis, this is an especially useful feature for many new and growing businesses.