Is a Loan the Best Thing for Your Business?

Did you ever wonder about the reasoning behind the need for putting down collateral in order to take out a loan? From the point of view of the lender it makes perfect sense. When a person or business puts down a collateral the bank no longer needs to worry where they are going to take the money from. Whether the borrower pays back the money that they borrowed or whether the bank takes the collateral, the bank gets paid. So to whose benefit is that type of loan anyway.
A loan that requires collateral is called a “secured loan.” There does exist a loan option called an “unsecured loan,” which, alternatively, does not require collateral, but interest is usually particularly high for unsecured loans.
In any case of loan financing there exist other issues too, such as unmerciful deadlines and mind-numbing forms that need to be filled out for application. Then after the entire application process it often takes a good chunk of time before the applicant receives a response. And in today’s economy even businesses that can prove that they are turning a nice profit are getting turned down. The bottom line, even if you have the potential for paying back the loan, you might not even get it.
So let’s add on, with even more bewilderment, to our original question, why are loans so difficult to apply for, to be accepted to, and to pay back? The answer shouldn’t come as a big surprise. The loan industry was never designed for the convenience of the borrower; the loan industry is designed purely with the interests of the lenders in mind.
Now let’s look at a few alternatives.
One alternative to acquiring money through a business loan is through finding investors. An investor- company relationship can be a very beautiful and loving partnership. As long as everyone is making wads of money, it isn’t too hard to find more people who will be interested in investing more. But if you are reading this article, you probably not in that position quite yet.
Another alternative to the loan for business is the business cash advance. The business cash advance is designed for you, the borrower, to have the simplest and most painless experience applying for, acquiring, and paying back your cash advance. Check out these conditions that you defiantly will not find with business loans.
1. No collateral- It’s that simple, do don’t need to risk everything in order to get cash.
2. You don’t need perfect credit. As long as your business regularly processes at least $5000 per month in credit card payments you are eligible.
3. You have no fixed monthly payment to pay.
4. The business cash advance cash is for you to use as you see fit, the lender doesn’t tell you what to do with it, lenders are flexible allowing you a lot of “legroom.”
5. You need not prepare a business plan or present financial or tax records in order to apply.
6. Applications are processed quickly, often within the same day.
If you are skeptical whether this is realistic or not let me explain. A cash advance is designed differently than a loan, instead of demanding that you pay the money back at set times, a percentage of the money that your business earns from sales is routed off to pay back the advance. Simply speaking, because of the simplicity of it, it makes your life much easier.