When you need funding for your small business, there are a few options to choose from. Factors you’ll want to consider: how much money you need, if the funding is time-sensitive, and if you are qualified. Here we’ll discuss the two primary means of funding: cash advance and bank loans. What are they, how do you get them, and which is right for your business?
Bank LoanA bank loan is a sum of money that a bank lends to a borrower at interest for a set length of time, usually on collateral security. The application process involves the institution reviewing your credit history, assets, and capital. When applying, you must prove that you will be able to pay it back. Once that is finalized, you will likely have to start paying the money back by paying monthly payments after 30 days. When taking out a loan, you will have an interest rate on the money you took out. This rate depends on several factors, such as your credit history and the amount of money you receive. The payment plan can be stretched over several years, with the applicant making monthly payments until it is paid in full. Thus when getting a bank loan, you must remember the commitment you will be making.
Cash AdvanceThere are many ways to attain funds for your small business by applying for a cash advance. To apply, you can go to an ATM, your bank, or get convenience checks through your credit card company. When you take a cash advance, the balance is added to your credit card, and interest is added until the borrowed amount is paid. Since you are being charged interest, this loan is ideal for the short term. It is the perfect way to get quick cash for your business that can be used for inventory, renovation, or payroll. They are also perfect for smaller amounts of money that you need now for a specific expense.
Whether you settle for a bank loan or a cash advance, you should devise a strategy for repaying the amount. Find out what type will work best for you, whether it’s a long-term or short-term loan. Remember to pay your minimum balance on time every month. Failure to pay on time will only result in more stress and debt. You can always apply for the National Retail Solutions Cash Advance if this seems too complicated. The NRS Cash Advance program has helped hundreds of customers by guiding them on what cash advance is right for them. After evaluating this, we are confident you will find the ideal payment plan to meet your business needs!