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Benefits of Business Credit Card and How It Advances Business


Small business owners face difficulty in their business when there is slow flowing of cash. In such conditions one faces many difficulties in carrying business smoothly. Some take business loans but here too the small owners with bad credit history face many difficulties. Business credit card cash advance is better option to get cash instantly.

Business credit card cash advance is a way of converting future credit card sale into present’s cash. This means that if you accept credit cards in your business then you can take cash from company with respect to your credit card sales.Hence your business will get funds which you will have to return by selling future credit cards.

This procedure involves very less paper work and you can get funs easily in short duration only. However the cash advance provider will take small amount from your future credit till you successfully payback the taken amount.

Positive side to this is that your provider gets his money when you get it back from your customer. Cash flow can be increased in business very easily by this means.


Let us now seeHow Business Credit Card Cash Advances Work

If you are a business owner you may understand that there come times in business when in hand cash is less and you need money to keep your business work smoothly. Business credit card cash advance is really very useful in this situation. No doubt the cash advance provider will deduct little of your future card sales. He will continue this till you repay the entire amount.

What is the Cost of Cash Advance on Business Credit Cards?

Different companies have different ways of calculating the fund that the business will repay. One way is summation of cash advance given plus small percentage of between 60% and 80% APR of the fund that has been financed.

Some companies multiply the amount taken with a constant ratio. This means that you will have to repay the amount taken multiplied by ratio that is some-where between 1.14 and 1.48.

Who is QualifiedFor a Business Credit Card Cash Advance

If business does all its transactions through credit card then it qualifies for cash advance. Also the business needs to be active in last six months. Hence it is not that hard to be qualified for cash advance.

Switching of Credit Card Processing is required

If you wish to get cash advance for your business then you need to switch credit card processing and sale system. Advance companies have hardware and software built in POS system of their own.

Let us now see benefits of business credit card cash advance

There are many benefits of cash advance as mentioned below:

  • In case you need instant money cash advance is a good option as it takes only 2 days for processing.
  • There is no need of any security.
  • The amount to be paid back is depended on your credit card sales.
  • It is open as mentioned in the agreement.
  • You are free to use the cash in the manner you wish. There is no string to it.
  • For cash advance your bad credit is not taken into consideration.
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