Business Cash Advance
Cash Advance is a business lending model used by many P2P lenders. Frequently, small businesses will have cash flow lapses due to unpaid invoices or other problems. Many lenders offer individual cash advances paid back with future revenue or like revolving lines of credit.
FundBox Review in Numbers: 2020 Updated 💰 Loan Amount $1,000 to $100,000 💸 Loan Term 3 to 6 months ⛔ Unsecured? Unsecured line of credit ‘Fundbox Net Terms’ secured by customer invoice ⌚ Requirements No specific business requirements, just US registered and a personal credit score over 500 ⭐ Client Reviews 94% 🌐 Website: Fundbox.com 🌝 Easy to Apply: Yes 📃 Required: Basic personal details Business’ annual revenue Years in business Provide invoices 💳 Minimal Interest Rates 4.66% 💌
LendingClub Review in Numbers: 2020 Updated 💰 Loan Amount $5,000 to $500,000 💸 Loan Term 1 to 5 years ⛔ Unsecured? Unsecured for loans/lines under $100,000 ⌚ Requirements At least 12 months in business Minimum of $50,000 annual revenue No recent bankruptcies or tax liens Own at least 20% of the business and have at least fair personal credit ⭐ Client Reviews 98% 🌐 Website: Lendingclub.com 🌝 Easy to Apply: Yes 📃 Required: Estimated credit score (minimum of 640) Annual
OnDeck Review in Numbers: 2020 Updated 💰 Loan Amount $5,000 to $500,000 💸 Loan Term 3 to 36 months ⛔ Unsecured? Secured by a general lien on business assets ⌚ Requirements Minimum of 3 years in business At least 600 Personal FICO score Annual revenue of $250,000 Have a business bank account ⭐ Client Reviews 98% 🌐 Website: Ondeck.com 🌝 Easy to Apply: Yes 📃 Required: Business Tax ID Bank statements for the previous 1 to 3 months Social Security
BlueVine Review in Numbers: 2020 Updated 💰 Loan Amount $5,000 to $250,000 💸 Loan Term 6 to 12 months ⛔ Unsecured? Secured ⌚ Requirements Different per product but standard term loan as follows: 600+ FICO 6+ months in business $10,000 monthly revenue ⭐ Client Reviews 92% 🌐 Website: Bluevine.com 🌝 Easy to Apply: Yes 📃 Required: Basic personal details 3 months most recent bank statements 💳 Minimal Interest Rates 4.8% 💌 Online Feedback: 4.6 / 5 Trust Score on TrustPilot
Kabbage Review in Numbers: 2020 Updated 💰 Loan Amount Up to $250,000 💸 Loan Term 6 to 18 months ⛔ Unsecured? Unsecured line of credit ⌚ Requirements Business has been operating for at least one year Yearly revenue of $50,000 or monthly revenue of $4,200 ⭐ Client Reviews 94% 🌐 Website: Kabbage.com 🌝 Easy to Apply: Yes 📃 Required: Business start date Bank account and routing number Monthly payroll statements for businesses with employees or non-profit organisations 💳 Minimal Interest
Loan Types: Merchant Cash Advance Availability: UK (Accepting Payments By Card) Securities: Against Invoices Loan amount: £2,500 – £300,000 Interest: Not Fixed, High Overall Rating: Helpful 3.7 / 5.0 About Liberis Liberis is a strong lender with a simple business model. They quickly approve and finance business operations for many reasons. Businesses pay them back by giving them a portion of daily credit card sales. On days where they make less, they contribute is less, until the balance is paid. Businesses
Loan Types: P2P Lending Availability: UK Securities: Unsecured Loan amount: £1,000 – £25,000 Interest: 7.2% to 16.7% Overall Rating: Experienced 4.1 / 5.0 About Zopa Founded way back in 2005, Zopa was ostensibly the UK’s first P2P lender. Today, the company is among the world’s largest. Based in London, Zopa is backed by Benchmark and Wellington Partners. It is that rarest of P2P lenders: a company available to people without lots of money, that doesn’t have sky-high rates and dubious
Loan Types: Small B2B Loans Availability: UK Securities: Unsecured Loan amount: £1,000 – £50,000 Interest: 4% – 14%, 1 month – 6 months Overall Rating: Quick! 3.9 / 5.0 About iWoca Originally geared toward small web merchants, iWoca has expanded its lending platform to meet the needs of nearly all UK businesses. Since its founding in 2012, iWoca has become established in the UK ecommerce market. iWoca balances convenience, security, and service, quickly gaining ground in a growing financial market. Sole
How Does Merchant Cash Advance Work?
The three businesses listed differ somewhat in the way they manage their cash advance model. But the underlying mechanism is the same. Money is quickly loaned to a qualifying business, on the basis of future funds they are expected to receive, usually as invoice payments or regular income.
When unsecured, businesses are typically well-vetted to make sure that they are unlikely to default. As interest is usually very high, businesses must pay loans back quickly in order for the service to be affordable, though this is understood from the beginning.
What Businesses Can Benefit Most From a Cash Advance?
Any business that has trouble maintaining operations, investing in important expansions, or funding businesses initiatives due to unpaid invoices or other cash flow issues will likely benefit from the cash advance model. These include some of the smallest businesses, as long as they are equipped for credit payment and maintain business or accounting software to communicate with the lenders’ systems.
Is Early Repayment Possible With Cash Advances?
Early repayment is almost always permitted without penalty. If not, a potential borrower is encouraged to find a different lender, as this form of financing is only affordable if it is able to be paid off quickly.
What’s the Difference Between Cash and Invoice Advances?
The two are distinct. There are companies that offer both, but most offer one or the other. In the example above, Liberis is the only Cash Advance P2P lender, offering simple loans for many purposes paid off with a daily percentage of future sales.
It is a simple model for borrower and lender. The other two company examples offer revolving lines of credit, against which individual loans may be instantly taken out to pay off new invoices with pending balances. These are quickly repaid when a client pays off the invoice in question, usually after 30 to 60 days.
Note: We list companies offering either cash advance or invoice advances (also known as invoice factoring).