Does your business need cash right now?
Sometimes times get tough, and you just don’t have the money to pay the bills. The result can be a paralysis by over-analysis. The choices can be overwhelming. Is it a foregone conclusion that only one-half of all small businesses that attempt to secure a funding solution, as suggested by the U.S. Federal Reserve Banks receive a viable financing option?
According to an Entrepreneur Magazine article, nearly 25% of all small business owners surveyed suggested that in today’s business lending environment, it’s challenging at best to get a capital loan for unforeseen expenses.
In 2014 Harvard University study took a deep dive into the plight of small businesses and found: “The banking industry in the aggregate appears increasingly less focused on small business lending. The share of small business loans of total bank lending was about 50 percent in 1995, but only about 30 percent in 2012.”
Business Cash Loans – When we speak to business owners like yourself today, we do not see much of an improvement. We all know that emergencies happen when you least expect them. The question is if you don’t have the cash do you still have options? Fortunately, a quick loan, such as a fast cash loan, is a good option for small business owners that are looking for money now.
If you’re not familiar with fast cash, we’ve created an easy guide to understanding cash loans and determining if you qualify:
What Are Cash Loans?
Many people today live beyond what they can afford, so they typically don’t have much to cover the unexpected. The same can hold true for businesses. The unexpected expenses are where a fast cash loan can be beneficial. When it comes to companies, even those that employ prudent cash management strategies and have a solid handle on their cash flow can be caught short-handed. Think about all the business affected by natural disasters. Whether you’re an auto repair company in Houston, TX or a restaurant in Key West Florida, nothing prepares you for the financial challenges and aftermath of a hurricane.
Fast cash loans are also a good option for small business owners, who might be in debt for start-up costs or waiting on account receivables. However, you have accounts payable and payroll, so a fast cash loan can help make ends meet in the short term.
When you don’t have time to wait for traditional capital loans from the bank (which can often take several months), a fast cash loan could be the right option for you.
This type of funding is also known as cash advances or merchant cash advances, and technically not the same as a business loan. The merchant cash advance looks at your merchant account, your daily credit card transactions, sales, and processing. The business cash advance is a fast and easy business funding solution. You do not have fixed payments. In fact, these are the most flexible payments you’ll find in the business finance marketplace.
Why? Since the repayment is a percentage of your credit card sales, we know that your daily sales fluctuate. Rather than committing to a fixed repayment schedule, this allows for the natural ebb and flow of the business. When you have a high day of credit card sales, you pay a bit more. If there are slow days, you pay less.
When there is a financial emergency, this is what the doctor ordered. Why add the additional stress of a fixed payment schedule when things are tough?
When Should You Use One?
Fast cash loans are good when you need cash quickly and have no other options. It doesn’t necessarily need to be in emergency situations only. In fact, these are the perfect solution when you do not have the business resources for virtually any business financing need.
Since fast cash loans are easy to get, it can be tempting to try and take one out whenever you need some extra cash. However, as we’ll discuss later on, cash loans often carry higher rates, known as a factor rate, so it’s best only to use them either in a true emergency situation or when you have a substantial business opportunity. The key is to know your return on investment (ROI).
Will I Qualify for a Loan?
The good news about the merchant cash advance is that it only takes minutes to apply and approvals are fast, usually in a business day or less. Time to funding is also fast. Unlike traditional loans from banks, bad credit usually isn’t an issue. Your dinged up credit score is another factor that makes fast cash loans so appealing. In fact, this funding option puts the least weight on your personal credit score. The application process involves submitting a one-page application with the last three months of business bank account statements and the last 3 or 4 months of merchant account statements.
Even if you currently have debt, maxed out credit cards or simply overall bad credit, a fast cash loan can still work for you. If you aren’t sure what your FICO credit score and credit profile are, you can determine that online. As long as your business credit is decent and your personal credit score is above 450, you should be OK.
Likewise, your annual revenue needs to be at $150,000 and monthly revenue north of $12,000. The cash advance is also the most liberal when it comes to time in business. As long as you can demonstrate a minimum of 3 to 6 months with increasing monthly revenue, again, you should be OK.
The qualifications for cash loans are usually very simple. First, you must own the business (usually at least 5% minimum), depending on the lender. You will also need a reliable cash flow to repay the loan and a valid business bank account. The cash advance is ACH’s into this account, and the lenders use this same account through your merchant account to ensure that you’ll be paying the money back.
What Will I Need to Apply?
Before you go through the application process, make sure you do your research and have all your documents ready to go. Consider making a checklist so that you have everything in order before applying.
Here is what you will typically need:
- Provide proof of a steady or increasing revenue. The proof is usually in the form of recent bank statements.
- A valid ID – usually a drivers license
- Social security number
- Active business checking account
- Current on lease and rent
- Active with the Secretary of (your) State
Of course, the requirements will vary depending on where you apply; this is just a general list.
How Much Money Can I Get?
Business emergencies imply that you need a significant amount of money quickly. The good news is that fast cash loans are available in a wide range of amounts.
Sunwise Capital loans start at ten thousand, but we’re able to offer up to $2M.
If you need money the same day, Sunwise Capital can provide up to fifty thousand dollars. If you have some flexibility, you can get up to $150,000 the next day.
Whatever your situation is Sunwise Capital will work with you to get the money you need as quickly as possible.
How Will I Pay Back the Money and How Much Will I End Up Paying?
Repayment terms will vary depending on a variety of different factors. Usually, it will depend on the health of your business and what your cash flow is expected to be. As previously mentioned your daily payback is a function of your daily sales. A certain percentage of your sales will be used to pay back the cash advance.
This “hold back” rate can range from a single digit number to 20 sometimes 30 percent or more. The hold-back is an assessment of the risk in your business. Likewise, there is a factor rate. This is the “cost of doing business.” The rate can be as low as 1.15 and as high as 1.50. This is also a reflection of the risk in your particular business and the industry as a whole.
What that means to you is that on a $100,000 cash advance amount you may pay between $15,000 to $50,000 over the payback period. What business cash advance lenders offer is a quick business cash loan today based on your future sales. You are selling your future sales ($115,000 to $150,000) for a discount ($100,000). This gets back to your return on investment. The most fundamental question you need to answer is, “What happens if I don’t get the money?”
At Sunwise Capital, we’ll work with you to find a repayment plan that works best. We offer the most aggressive rates with the most liberal terms. Just remember that these are unsecured business cash advances. Hence the higher rates than the traditional bank loan. It’s also no wonder why the business cash advance for start-ups is an attractive financing option.
Are There Any Other Options?
If you need cash quickly, business cash loans are truly the best choice if:
- You are a business that takes credit cards
- Business loans for small business
- Business loans for startup businesses
- Business loan for existing business
- Need business cash loans for bad credit
- Variable daily payments
- Annual revenue is less than $150,000
- Annual revenue is greater than $200K
- Higher approval rates
- No assets or collateral required
- No traditional personal guarantee
Business Cash Advance vs. Loan
What if you do not have credit card sales but still need money? What is the difference between business loans and cash loans? You might be asking if there are cash loans for bad credit?
The reason you are here is that you need quick cash loans. Rest assured that if you need speedy cash online loans, Sunwise Capital loans can help.
Most traditional bank loan options have a lengthy application process, and the approvals can take up to three months. If you need a business cash loan for bad credit, the bank is not the solution. In fact, the banks, credit unions, and other traditional lenders want to see at least three years of business tax returns and three years of your personal tax returns as well. They want full financial statements along with perhaps some 20 plus additional documents. The process is long, on average over 28 hours of your time and unless you have near perfect credit, it’s almost impossible to get the funding you need, especially quickly.
If you’re looking for an approval within 24 hours and next day funding we have the solutions for you. You can have all of the advantages of the business cash advance, except your payments will be fixed. Now instead of almost always having to repay on a daily basis with the merchant cash advance (although sometimes weekly), you might have weekly or even monthly repayment options.
If a fast cash loan sounds like a good option for you or your business, Sunwise Capital is here to help every step of the way. Our loans are a great option for getting the cash you need quickly and easily.
We have no hidden fees, and we won’t report to either the personal credit bureaus while we do report to the business credit bureaus. So our loans are truly a good option whether you have good credit or bad.
Visit the fast loans section on our website to read more about our specific requirements and to apply today.