As a small business, it can be difficult to obtain a business loan through traditional means. Banks and other traditional lenders can be weary of lending new and upcoming businesses large sums for fear of their returns on them. A business cash advance is an easy way for a small business to having immediate working capital for their business needs. A typical term of a business cash advance can range anywhere from two months to three years depending on the terms. An upside of having a business cash advance is that the terms of repayment can be very customizable. This blog will highlight ways merchants can handle their multiple cash advances into manageable payments to help their business stay afloat.
Depending on the terms of cash advances, the required returns from multiple cash advances can be overwhelming. Returns on cash advances to the funder can take the form of daily returns taken from the revenue of the business from that day. Other return methods can include scheduled withdrawals from the businesses bank account or a variety of other options. In the case of multiple cash advances that have been taken out, daily returns can be detrimental to the business that it may actually be losing money. Luckily there are options to consolidate with multiple cash advances that have been taken out.
There are a number of ways a business can consolidate their cash advances. Today we while talk about one effective way called reverse consolidation. Reverse consolidation can be a beneficial alternative to overwhelming daily returns on multiple cash advances. The way reverse consolidation works is that the reverse consolidation company acts as a barrier between the funding company and the lender. The reverse consolidation company will allocate funds into the businesses account to cover the cash advances payments. The business will then pay a much smaller amount to the reverse consolidation company than they were to the cash advance funder. This method can help the business in a number of ways. Payments are greatly reduced to a more manageable amount. A reverse consolidation can give the business time to find better options of paying off the cash advances. The downside of reverse consolidations is that over time, you will be paying more money to both the reverse consolidation company and the cash advance company.
Reverse consolidation is not the only option to help with cash advance payments. It can greatly help your business but it is always helpful to do your research before settling on one option.