Why Cash Advance Loans May Not Be Good For Business

It’s likely you have been increasingly exposed to the advertisements for business “cash advance loans” or merchant cash advance loans where the borrower receives a loan based on the average balance in their business bank account. After issuing the loan, the lender then takes out a set amount of money each day as payment over a period of time. A lot of companies pursue this type of loan because it is seemingly simple to acquire this financing over traditional loans. You may have been influenced to try the cash advance route instead of invoice factoring.  The early adopter borrowers have been using the cash advance loan method for about a year and are now finding the high-interest rates impossible to deal with.

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How to Get Out of Cash Advance Loans

We are now experiencing a rise in these borrowers looking for factoring transactions to help with cash flow and to get out of these commitments. Through a painfully expensive experience, you may be looking for another financing solution that frees up cash flow and comes at a much lower cost.

If you are business that is billing companies rather than individual consumers, invoice factoring is often a more cost effective financing solution than cash advance loans.

If you want a way out of the cash advance loan repayment commitments, Universal Funding can help.  We can provide fast financing through invoice factoring and can deliver a loan workout so that you have the cash flow you need without a costly repayment plan. Fill out a rate form or give us a call at 1-800-405-6035 to discuss your financing today.

About Universal Funding

Universal Funding is a private funding source that has funded thousands of businesses and more than $2 billion since 1998. We turn your accounts receivable into the funding you need through invoice factoring and can have capital in your hands in a matter of days.

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