Looking for working capital doesn’t just happen during the initial phase of your business.

Now that your doors are open, the need for working capital to either expand your business or keep it running smoothly remains. In the search for additional funding; you are faced with the question “should I get a loan from the bank, or should I consider applying for a credit card advance?”

Depending on your situation and the current market; a credit card advance may be your only option.

Let’s consider the differences between these two types of loans and decide which one is best for you.

Most loans from the bank require collateral, a credit score of 700 and you r company must be open for at least 2 or 3 years. Not to mention the time it takes from your schedule to set appointments, make pitches and present your business plan.

To get a credit card advance you do not need a great FICO score. All we require is that you process at least $2,500 in monthly credit card sales, and be open for at least four months.

If you have unresolved bankruptcies, tax liens, or have less than a year left on your lease; you may be disqualified for a merchant loan approval. These are simple requirements when you compare them to a traditional bank loan.

A Credit Card Advance Has Many Advantages

It is very common for a successful business owner to use a bank loan to expand and improve their business so that it becomes even more profitable over time. You can use a merchant loan exactly the same way.

One of the disadvantages a business loan is the amount of time it takes to process. Any urgency for the funds can be seen as a risk and could jeopardize your chances for approval. It could be that you are faced with unforeseen expenses or you were offered a business opportunity that requires immediate action. Either way; this makes a bank loan look even less desirable.

Getting funded for a credit card advance takes much less time than a bank loan. If an unexpected expense comes up, you could have the advance deposited directly into your bank account within seven business days; giving you the ability to tackle your financial needs much faster.

Flexible Payment Structure

A big difference between a credit card advance and a business loan is the way in which you repay it. As a business owner, you understand how unpredictable your monthly income can be. Making the same monthly loan payments during a slow month can be difficult at best. A unique feature of a merchant loan  is that the payment is flexible. Your payments are based upon a percentage of your daily credit card sales instead of a fixed number. Your payments are automatically deducted from your daily credit card sales. This way the payments flow with your business taking away the stress of trying to make your monthly loan payments.

Please use this link to learn more about a CREDIT CARD ADVANCE.

Christopher Ronk writes articles about business loans and credit card advances for http://www.creditcardadvance.org

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