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Old 7th January 2014, 04:39 AM   #1

Join Date: Dec 2012
Posts: 28
Default Advance Cash For Small Businesses Is Worth To Risk?


Recently i heard about this advance cash working capital that is being offered by various companies like http://www.emerchantcashadvance.co.uk/ in UK.

I will really appreciate your input about such loans and some hidden risk behind it. Does it really worth a risk? have you ever tried such types of loan?

Please share any reference in US!

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Old 16th January 2014, 03:44 PM   #2

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Be careful with the terms you are being offered. You don't want to end up paying 30-40% or more interest for a cash advance. Definitely shop around and explore all your options.

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Old 8th May 2015, 11:09 AM   #3

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Location: Costa Mesa CA
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Default be careful

These cash advance products are structured on a factoring basis instead of traditional loan + interest rate. Most are structured like this
Merchant needs $10,000
They agree to pay back $12,500 by having the processing company deduct 20% of their daily credit card receipts until the money is paid back. They usually structure it so that they are paid back within 6-8 months but there is no time frame.

If you have good cash flow and just need the money for new equipment or for a one time payment it might work for you. If you are doing it because you are constantly falling behind on your bills or cash flow is really tight, these can be crippling. Giving up 20% of your daily sales can be tough on a small business.

Pros- No time frame, Doesn't affect Credit, You pay back on your schedule so if you have a busy day more is paid back, if you do no business one day there is no payment

Cons- Expensive money (25%-40%), You pay back 20% of your daily credit card sales, often end up in a perpetual borrowing cycle.

Hope this helps.


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Old 12th May 2015, 02:08 AM   #4
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You'd better be sure of the numbers you're making before going into this kind of financial deal, because it can kill you very easily. If you're not doing the sales that you need to, you're not going to make it. And you need to pay these guys back within a year--ideally, in six to eight months--because these guys are the first to get paid, and then you start paying your bills. So if you're not doing well, you can lose your business.

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Old 10th June 2015, 02:19 AM   #5
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Default Yes be carefull read all the terms

You should be careful before making these types of deals in finance.sometimes you read the document or terms but couldn't understand what the exactly is this. this is why there are professionals who can suggest you the right thing.

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Old 28th June 2015, 02:04 PM   #6

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Location: Stuart, Florida
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Exclamation Cash Advance for small businesses

I am actively in the process of securing cash advance financing for clients all over the United States. I always interview the client carefully before putting them in such an arrangement.

Cash advance works great if you have a thriving business that needs some short term capital to fulfill some business purpose.

This type of financing is expensive but it's fast. None of the runaround you get from banks and even private capital.

Be very careful to make certain that you fully understand the terms that are being offered.

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Old 19th September 2015, 12:43 AM   #7
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Piterion is a good consultancy providing very good services in IT and also to manage the initial financial investment. The best way to get the idea of the initial investments is by getting expert advice.

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Old 17th October 2015, 02:01 AM   #8
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Basically, if you are in small business, you will definitely require some external financial resources for your financial growth. But it could be problematic for your business if you neglect some important factors.

1. You have to do some research on the organization which is providing loans for your business.
2. What are the interest rates? Normally such loan are expensive because the interest rates are always high.
3. The last one you have to be sure that you will definitely repay the loan amount in predefined time.

I hope this will help you a lot ...

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Old 19th October 2015, 03:31 PM   #9
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Location: Rocky Hill, CT.
Posts: 17


Your best bet is to contact a reputable business loan broker. Brokers usually have the majority of lenders in their portfolio. They will find you the lowest interest and best overall terms on financing because it gives them the best chance at closing the loan. Businesses have a lot of different financing options these days.

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Old 20th October 2015, 08:18 PM   #10
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Default Business Financing

I personally work for a Business Advance Company. My recommendation is to work with an advance company with an in-house funder. Its easiest to negotiate with an underwriter that you can speak face to face with then someone 100 miles away. Its a common misconception that the "cold caller" is out to get you. Just like you, the person calling you wants the best deal. If they make you happy, you tell people and so on; so their book of business grows most from referral business.

With that being said if anyone would like to explore this route, I can provide you with my personal email address and I will forward you the process. From there we can talk about your business and generate several deals to compare the different funders out there. I find the best way to be successful in my industry is to lay the figures out on the table and if it makes financial sense for you, take it. If not, explore your options.

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