Whats the difference between a secured business loan and an unsecured business cash advance?
A traditional small business loan requires a written loan proposal resulting in time-consuming work and funding delays. They involve strict monthly repayment schedules regardless of your monthly business revenue flow. Also, small business loans are very difficult to attain from a bank when you need it the most – like during cash shortages – rather then when you are in profitable. Bankers focus on past credit history to determine the loan repayment program and assurance of the set monthly repayment is their prime concern while approving a loan. Therefore, the small business owner is typically required to personally guarantee the loan or secure the loan with collateral like the owner’s home or other assets. A business cash advance is funding provided against the monthly credit card sales volume to facilitate the instant availability of cash for a small business. And it does NOT require a personal guarantee or collateral.
