How to Use a Business Cash Advance | National Business Capital

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What Are the Best Uses of a Business Cash Advance?

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There comes a time — even several times — in the life of every business where cash flow temporarily stops flowing, and it becomes necessary to get a business cash advance. Or on the other side of the spectrum, profitable limited-time opportunities can arise unexpectedly, and once again a business cash advance makes strategic sense. We’ll explore some of these possibilities in a moment. First, let’s clarify what a business cash advance is — and what it isn’t.

What is a Business Cash Advance?

A business cash advance technically isn’t a business loan, or a business line of credit. It’s an advance on future sales — typically, credit and debit transactions. For this reason, business cash advances are also called merchant cash advances (and this is the term we use here at National Business Capital).

How Does a Business Cash Advance Work?

Businesses that receive a business cash advance agree to remit a small fixed percentage future credit and debit card sales, until the advance (principal plus accrued interest) is paid in full. The payment is made at the end of each business day, and handled automatically.

One of the most beneficial aspects of a business cash advance is that, as noted above, the repayment amount is dynamic rather than static (as is typically the case with a working capital loan). As such, if sales on a particular day are above average, a little bit more is allocated to the loan — which moves the needle closer to full repayment. Alternatively, if sales on a particular day are slower-than-normal, borrowers have more funds available on-hand to boost sales and get back on-track.

How to Best Use a Business Cash Advance

At National Business Capital, we don’t impose restrictions or rules on how our customers can spend their business cash advance. This isn’t because we don’t take an interest in their success. Rather, it’s because we firmly believe that our customers — rather than us — are in the best position to make smart, timely and strategic spending allocation decisions. Indeed, perhaps the only thing worse than a back seat driver is a back seat lender!

With this being said, we are available to our customers 24/7/365 to answer questions and provide guidance, suggestions and advice. To that end, here are some of the ways that our customers nationwide are using their business cash advance to drive their business forward:

  • Purchase new equipment
  • Purchase new inventory
  • Hire new staff (including temporary/seasonal staff)
  • Cover facility or building repairs, renovations or upgrades
  • Implementing new technology (e.g. software, telecommunications, mobile devices, etc.).
  • Launching marketing and advertising campaigns

Again, these are just some of the ways that a business cash advance can be used to help bridge a temporary cash flow shortfall, or exploit a profitable and limited time opportunity.

Learn More

To learn more about a business cash advance, contact us today. Or if you’ve decided that this is the right financing option for your business, start your secure online application now. It only takes a few minutes, and we’ll be in touch within 24 hours with a decision. Unlike banks, we don’t require great credit or collateral, and we approve about 90 percent of applications.

  • Are Merchant Financing Loans Right For Your Business? (2022)
  • 7 Ways Merchant Cash Advances Are Not What You Think
  • Merchant Cash Advance Specials for 2022
  • National Announces New Performance Advance Financing Solution
  • What’s the Difference Between Cash Advances and Loans?
  • Are Merchant Financing Loans Right For Your Business? (2022)
  • 7 Ways Merchant Cash Advances Are Not What You Think
  • Merchant Cash Advance Specials for 2022
  • National Announces New Performance Advance Financing Solution
  • What’s the Difference Between Cash Advances and Loans?
  • What Are the Best Uses of a Business Cash Advance?
  • Last Updated on July 11, 2017

    National Business Capital helps entrepreneurs secure quick and fair financing to save time and cultivate sustainable growth.

    Our stress-free online platform is designed for simplicity and speed, helping business owners go from application to approval in a matter of hours. And while we remain a leader in the Fintech industry, our clients agree it’s our personalized service and award-winning team that sets us apart.

    From SBA loans to lines of credit, to equipment financing, and more, business owners can access all the different financing programs available to them in one place. Through our streamlined process, we have helped clients secure over $2 billion in financing since 2007, and, more importantly, we’ve helped entrepreneurs save a tremendous amount of time and grow faster.

    About the Author, Joe Camberato

    Joseph Camberato, CEO of National Business Capital, developed a passion for business at a young age. Joe started his company in 2007 in his spare bedroom and has grown to secure over $1 Billion dollars in financing for small business owners nationwide. National’s team has an amazing culture and has been name the #1 Top Workplace on Long Island 3 years in a row and counting. Joe is a trusted financial expert who’s published more than 2,000 articles in the last 3 years. His articles have generated over 5 million page views and has been featured on blogs such as Google News, Yahoo, CNBC, Forbes Magazine, etc. His passion has also inspired him to build the "GrowByJoe” YouTube channel where he shares his insights into small business trends and tips for growth. Joe also holds a seat on Forbes Finance Council and is an active member of the Young Presidents' Organization (YPO), a global leadership community.

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    Disclaimer: The information and insights in this article are provided for informational purposes only, and do not constitute financial, legal, tax, business or personal advice from National Business Capital and the author. Do not rely on this information as advice and please consult with your financial advisor, accountant and/or attorney before making any decisions. If you rely solely on this information it is at your own risk. The information is true and accurate to the best of our knowledge, but there may be errors, omissions, or mistakes.