Traditional Bank Loans vs. Cash Advance Financing
There are many differences between bank loans and cash advance financing. From the time it takes to get approved for a loan and receive money, to the guidelines and legal ramifications, many people find different reasons to choose a particular method of financing their business needs.
What is the Difference between a Cash Advance and a Business Loan?
There are some vast differences in cash advances from typical loans that you would get from a traditional bank. Weighing your options on either side can prove to be beneficial in helping you acquire cash for your business.
It can also show you why so many business owners tend to go the route of the cash advance way rather than using their local, regional, or corporate bank.
Why Choose Cash Advance Instead of a Loan?
One reason that many businesses choose business cash advance financing is the simpler guidelines when applying for working capital. Business cash advance fiancning for the most part is more readily available to business people that to get money from a bank.
The easier lending guidelines with business cash advance financing allow more people a chance to get money to run or potentially save their business.
Because of this more and more people are starting to see that the cash advance industry allows more opportunity for small business owners to succeed, which in turn means more business owners turning to cash advances. Z&R Funding understands the need for small to mid-sized business owners to have access to fast cash and have many programs designed for such business owners.
To learn more about Z&R Funding and the cash advance financing options available, give us a call at 888-237-6991.
Disadvantages of a Traditional Business Loan
When dealing with your traditional bank to obtain a business loan, you are usually required to come up with some type of collateral to put up for the bank in case you fail to pay your loan back.
When dealing with a cash advance this step it not necessarily required. This makes it much easier for people to get the money that they need for their business. In the case that you do fail to pay back a cash advance, the business you obtained the cash advance from usually has lesser options than a bank or traditional lender.
When dealing with a bank you would potentially loose the collateral and in some instances still be required to pay what is left of the loan legally, even sometimes after bankruptcy.
Advantages of Business Cash Advance Financing
Cash advances also allow less interest to be paid on the amount of money borrowed. This in turn saves business owners more money in the long term.
When you get a business loan from the bank you typically must pay back a high amount of money in interest. Because cash advances essentially cost less, more people like the comfort of not having to pay more money back than what they actually borrowed in the first place.
Get Money from a Cash Advance Company
The cash advance industry offers many wonderful benefits to businesses who would rather use a different form of financial funding than a bank for their business needs.
Besides the smaller interests, easier guidelines, and no collateral, many people also find that the overall experience of dealing with a cash advance business is much easier than going into a bank for a business loan. Because a cash advance offers money faster as well, many businesses find this to be a detrimental deciding factor in why they actually choose a cash advance over a traditional bank loan.
Given all of these benefits together, and it is not very hard to see why so many people are looking to get working capital from a cash advance company rather than a bank loan.
At the same time, some businesses are interested in a regular small business loan. This is why ZR Funding also offers small business loans for those businesses not interested in cash advance financing.