When it comes to becoming a business owner, you have to get a little savvy with finances. After all, you need to use credit in order to be entrusted with larger sums of money down the line. If you go your entire business journey without engaging with any sort of lender, you will find that when it comes to a time when you need to lend larger amounts of cash, you will be rejected, as lenders will be unsure as to how trustworthy you are in regards to handling your finances. However, at the same time, when you do borrow you need to make sure that you are responsible and keep to the terms and conditions of your agreement in order to leave a good impression. So, how do you go about increasing your business’ credit score? Well, a good place to start is engaging with cash advances. Read on to for more information that could make the world of difference to your company.
What is a Cash Advance?
There are two main types of cash advance. The first will pose itself to you when you take out a credit card. Your card is likely to have the option of taking out a cash advance. Essentially, this means that you can use your card in an ATM machine or take it to a bank to withdraw cash that will be taken from your card’s credit limit. This cash can then be paid back with interest in the exact same way that you would have to if you made a payment on your card itself. This may be useful if you have partners or outsourced employees who take payment in cash, however, generally, it would just be easier and less costly to use your credit card itself for payments, as cash withdrawals can often incur a fee. The second type of cash advance is the one that we want to focus on. This is a type of cash advance from a private lender who will give you a lump sum of money with a fixed payment term, such as those offered by https://www.swiftfinancial.com/. With Swift Financial, you can borrow between $5000 and $500,000 with repayment periods ranging from three to twelve months. The funds can be with you in as little as one business day following the finalization of your application, and the company offers the best price guarantee.
What Can I Use a Cash Advance For?
Depending on your business, a cash advance can be put to all sorts of uses. If you have a restaurant, you may want to refurbish the building to offer an alternative and more inviting atmosphere for your customers’ dining experience. If you have a retail store, you might want a refit to display and organize your stock in a more aesthetically pleasing way. If you have offices, you might be considering replacing your furniture and fittings with ergonomically designed alternatives to increase the welfare of your staff. Regardless of what you need the money for, a cash advance can cover it, allowing you to cover the initial costs outright and pay back the lender in a more timely manner.
So, now you know the basics of cash advances, it may be time to apply for one to undertake the changes to your business that you’ve been putting on hold for lack of funds. These changes will hopefully increase sales and your turnover, making the investment sound.