Friday, December 25, 2009
Would a Business Cash Advance Have Been Better?
There is an article on Inc.com on "You Pay loans every day." Profiles of E 'and Becky, Carlos Alvarez, husband and wife, owners of Wizards of Sound, "... a distributor and installer of car audio systems and accessories in Buford, Georgia," (Inc.com). The article said the couple $ 50,000 credit line has been removed, were unable to find a bank to approve a business loan and credit card companies had increased interest rates at a faster rate Alvarez were willing to pay. Like many other small business owners who suffer the effects of the credit crisis, the article says that the couple decided to try a new form of business financing. But after reading the article, I must ask, "would be a cash advance business has been a better solution?" The paper argues that the method of financing of companies chosen by Alvarez may be less expensive than a cash advance business. But can business owners who opt for this method also has to pay another way? It appears that a cash advance company would be more convenient for owners of small businesses and, frankly, is not so puzzling. For Alvarez, five days a week, the lender "... costs $ 71.48 to the account of the parent company. If there is enough money in the bill, a penalty of up to $ 50 is assessed. Missing three installments succession may cause the loan default. "With this reimbursement procedure, the small business owners must always ensure that there are sufficient funds in their bank accounts or face a penalty. This can be even more stressful to make monthly payments. If there are insufficient funds in the account, not only face a penalty by the lender, but may also have something to do with inadequate funding of their fees banks.Business cash advance payments, on the other hand are deducted daily sales only credit card, so there is no possibility that the lack of funds. If the company does not process credit card sales on a given day, so no money deducted.Secondly a creditor who has chosen Alvarez follows the same amount each day, regardless of the amount of card sales credit is processed that day. Cash advance lenders Business deduct only a percentage of credit card sales daily, which allows reimbursement to be flexible and go with the flow of business. Before using alternative methods of business financing, small business owners can visit sites like cash before obtaining a business appointment in advance free cash and whether the business cash advance is the best option for their business.