Business Cash Advance
A Business Cash Advance is a financing product that allows a business to pledge a fixed percentage of its future receivables to be paid back (usually daily) along with a fixed fee over a period of time. This option also allows a business to repay the advance based upon the performance of the business, so your payment could be less during slower periods. A Business Cash Advance is similar to a Merchant Cash Advance except it takes into consideration your entire revenue stream, and the daily remittance is from your business bank account instead of from your credit card receivables. This product is great for the business that may not qualify for a traditional term loan, may not have stellar credit and/or doesn’t want to put up collateral. The processing time is also very quick - the application and approval process are usually only a few days. The biggest drawback with the Business Cash Advance is the cost as the rates are typically much higher than most other traditional lending products.
- Business-friendly daily repayment schedule
- Quick approval process
- Good credit and business collateral are not required
- Loan Amount – $10,000 to $500,000
- Process Time – 1 to 5 days
- Factor Rate – 15% to 40%
Lisa was pretty frustrated when she contacted Prestar Capital looking for some working capital for her tennis coaching and supplies business. Even though she had been in business for two years with stable, growing cash flow, she had been denied by her local bank that she had been with since the start. They told her they couldn’t work with her due to her credit, which had taken a hit while she was starting the business. Fortunately, Prestar Capital has a network of funders that look at the health of the business as the primary qualifying factor so we were able to get her the cash quickly so she could upgrade her inventory and hire additional staff.