What’s the Difference Between a Small Business Loan and a Cash Advance
In business, there are so many different terms and funding types that it can all get quite confusing. For example, you may not know whether you need a small business loan or a cash advance to meet your financial needs.
You already know the difference between a business plan and a business proposal and how each can best serve your company. Once you understand the differences between a small business loan and a cash advance, you can make the decision that is right for your unique business.
The Truth about Getting a Small Business Loan Today
Over the last several years new financing has replaced banks for small business loans. It is called a business cash advance and it is pretty much the standard now for businesses with under $10 million in sales.
Banks were never really good at giving small business loans because they always asked for collateral to back up the small business loan and when one has a small business, often collateral is only in place when you have a lot of success. The most you would be able to get from a bank is a home equity loan or line of credit, meaning you must put your home at risk.
In addition, banks take a ridiculously long time to process applications. After asking you for tons of paperwork, they may still take weeks to give you a decision. Worse still, even if they do approve your application, it could take several more weeks to actually get your money.
What You Need to Know about a Cash Advance
A cash advance typically ranges from $5,000-$150,000 and is unsecured, which means you do not have to have collateral. The lender often will approve your application in the same day and you get your funding within 48 hours thereafter.
The process for applying is easy, often requiring that you only answer a few questions and then send some back up paperwork. Cash advances are often given to companies where the owner has bad credit and has found it difficult to obtain a traditional fast business loan.
Cash advance companies, like Financing Solutions (www.financingsolutionsnow.com), do want to see that you will be able to repay the funding. However, the decision on whether to give a cash advance is often based on your business results, not your credit score.
How to Differentiate Your Business from the Competition
It is important to keep an eye on your competition. This is how you stay on top of industry trends and prevent them from stealing your market share. Nevertheless, to really stand out, you must figure out what you do better and capitalize on it.
One way to learn what makes you different is to ask your customers and clients. Why do they choose you? Why do they stay with you? Don’t just assume you know the answers. Their actual responses may surprise you.
You can also offer something distinctive. It may help to think a little outside the box here. For example, instead of the usual coupons and sales, you can offer incentives such as hassle-free returns or extended hours by appointment.
Of course, all of this can be done easier with the right funding and you can get it from Financing Solutions. With their help, you can get business cash fast to keep your business growing.