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Is Your Small Business Feeling a Cash Crunch?

Tristan Anwyn

October 16, 2015

Are you struggling to find funding for your small business, or wondering what you would do if your business hit a tight spot?

Sometimes finding the right cash flow solution for your business is a real challenge.

An approved cash advance can free up your finances until things are on an even keel again.

So just what is an approved cash advance solution and how can you use it to help your business?

How Approved Cash Advances Works

Approved cash advance solutions are obtained from a merchant approved cash advance company. The company buys a certain percentage of your future credit card sales, and then pays you for them immediately.

You are free to use the money to help your small business in any way you need to.

You pay back the money via a percentage of your future credit card sales being collected by your lender. This continues until your debt is paid off.

When Might I Need An Approved Cash Advance?

An approved cash advance can be useful if your small business has an emergency.

There are many financial issues you can plan for in your business, and it's always a good idea to plan ahead where you can.

However, the truth is that sometimes you will be taken unawares.

Perhaps Mother Nature will stall your business with a fire or flood, or perhaps you or an employee will have a sudden illness or accident. Perhaps one of your suppliers or clients will go under, leaving you short on assets, or cash.

An approved cash advance can prove helpful if you find yourself in such a situation and need money quickly.

When Finding Funding Is Difficult

Sometimes the issue isn't so much with an emergency, as with having difficulty finding the funding you need to start or sustain your business.

As the article "3 Reasons Small Business Owners Choose Approved Cash Advance Solutions" points out, not everyone has access to the standard recommended options for business funding.

You may lack the funds you need to invest in your business, but find that you don't qualify for a loan and can't drum up the funds from any other source.

If your business is low on funds, if you have salaries to be paid or bills piling up, a cash advance can be a viable option when you're not sure where to turn.

How to Make an Approved Cash Advance Work for You

If you choose an approved cash advance to help your small business, it's important that you do all you can to make that advance work for you.

The first thing is to be sure you understand the repayment terms.

Make sure you have a copy of the terms in writing, stating exactly what you will owe, when you will start paying it, and how much you will be paying at a time.

Remember, an approved cash advance isn't a loan. You get the money as payment against future sales - and when you make those sales you will need to pay the money back.

Consider carefully whether you are going to make the sales you need to do that comfortably.

It's also important to take account of how making repayments will affect your business cash flow in the future. A cash advance can help you out of a tight spot, but do be sure you allow for the repayments, or you could just be putting off trouble.

Lastly, do some research about your lender. Read reviews, and ask for recommendations.

If your small business is in a tight spot, a cash advance can help you past it. Just be sure to plan for repayments to keep your cash flow healthy in the future.

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