Business Cash Advances can help you build Business Credit

Let’s face it, if you had a good stash of cash in the bank, had been in business for at least three years and could provide financial statements that show a good amount of revenue and growth over those three years, you’d be a slam dunk for a business loan. But this is rarely the case, especially with new business owners. The key challenge faced by new business owners is not having enough working capital to grow or expand the business. If you can’t get a loan, then what? 

Fortunately, there’s a way to get the money you need now and start building your business credit so that you are able to get a business loan in the future if the need arises. It’s called a business cash advance. In a nutshell, a cash advance is an advance of money to you for your business that you pay off over time using your credit and debit card receipts (find out more about how a business cash advance works).

Here’s how the use of a cash advance can help you build your business credit: you apply for a cash advance (find out how our underwriting process works); use the advance to hire new employees, purchase equipment or inventory, or expand your business through sales and advertising; watch your growth materialize; and then with a stronger or bigger business you can graduate to bank credit. 

Banks have certain business loan requirements that they like applicants to meet before they’ll consider giving them a business loan, like: 
  • A sound business profile, such as a document describing the type of business, annual sales, number of employees, length of time in business and ownership
  • Business financial statements for the past three years and current interim financial statements
  • Collateral, including available cash, equity, real estate, etc.

With a cash advance you can start to build your business so that it is credit worthy and the banks will want to lend you money. It’s that simple.

Here are some more business credit tips for new business owners:
  • The longer your company has been in business and has a had a good standing with the state and city, the better
  • Open a checking account for the business as soon as possible and keep a balance of at least $1,000 at all times if possible
  • Pay down your credit cards and other business loans to show that you can handle regular loan payments

Get more information about business cash advances.