Why does a Business Cash Advance Cost More than a Business Loan?

It is no secret that the typical credit card advance loan costs more than your average bank loan. There are a number of reasons for this which I will try to explain.

Volume

Banks have been in business for decades. They spend millions of dollars trying to earn your trust and to attract customers. Business cash advances have only been around for a few years and relatively few people are even aware that they exist.

Banks also have the luxury of handling all of your checking account transactions, which gives them an added source of revenue. Trillions of dollars flow in an out of the banks and although the percentages may be smaller; they earn countless billions from these transactions.

Risk

Have you tried getting a bank loan lately? It is getting harder and harder to get one because of this so-called credit crunch. Basically, the banks lost a lot of money because of previous risks they made, and now they want to hold onto the money they have left. Ever heard of the expression “once bitten, twice shy”? That pretty much sums up the credit crunch.

A credit card advance was designed to take on added risks by offering money to people that most banks would consider not worthy of loaning money to. Even though they have come up with a way to minimize these risks; the risk remains, and they need to charge more to compensate for it. I know a lot of people in this industry and believe me; nobody is getting wealthy from offering this service.

This service was designed to help businesses who are having difficulty getting a bank loan. Although it may cost more; the rates are still competitive. I invite you to see for yourself what a credit card advance loan can do you by filling out our simple form and allowing one of our professional consultions prepare a customized, up to the penny quote.

How to apply for a business cash advance?

Applying for a credit card cash advance is easy. There is very little paper work and you are typically approved within 48 hours. Let one of our credit card advance specialist get in touch with you today and receive a free, no-obligation quote! Fill out the form on the left or call (800) 277-1750 to speak with a specialist and get the cash you need in as little as 7 days.

Additional articles
How Long Does it Take to Get Funded with a Credit Card Advance Loan?
Tis the Season for a Credit Card Advance Loan