When Cash Kills a Business

Everyone knows the old saying, “Cash is King”, but what they don’t always realize is that cash can kill a business’s chance for survival and success if the small business owner isn’t careful, plans properly and has a source to get the working capital they need when they need it.

It all comes down to the fact that cash is a finite, rigid resource—in other words, once it’s gone, it’s gone. And, with the business on track for success but just a bit sort, or when opportunities for growth or other needs occur that cash is needed, who can the small business owner turn to. Usually not banks- in fact over 92% of small business owners who approach banks for loans are turned down. While it’s not the right way to treat those entrepreneurs who are the life blood of America, that’s the unfortunate way it is.

The small business owner, who relies only on traditional sources like banks, will frequently come up short at often the worst and most crucial times. The scenario is usually the following: the owner desperately needs supplies, materials, resources, etc., to maintain or expand, BUT, they have run out of working capital. The business ends up floundering and sometimes sinking for good.

No matter how carefully and thorough someone plans and budgets for their business, they are almost ALWAYS going to be under-funded. It’s the unfortunate reality. If you study how companies that used to be small businesses like Fed-EX, Ben and Jerry, Microsoft and on and on became successful, it’s because they were fortunate enough to get working capital when they needed to grow and in some cases survive. Unexpected expenses, inflation, living expenses, health insurance, marketing, taxes, and business cycles all destroy the budget. It’s the reality for many small business owners- the need for cash- and often it’s the difference between failure and their business “taking off.”

Whether a business is booming or in a lull, lack of working capital at the right time could kill it!

Many small business owners will resort to using personal credit, personal loans, or asking friends and family to help. Personal credit is very restrictive. Bad credit means the owner will be denied or charged high interest rates. Great personal credit will be damaged when over-extended for business use and has restrictions relating to debt to income ratios. Friends and family will run out of funds and patience.

There is a little know but extremely effective way for a small business owner to receive the working capital they need to grow, prosper, get through tough times, payoff debts or whatever reason. It’s a total; departure from only thinking about banks, personal credit, credit cards or friends and family It is called Credit Card Cash Advance which is a different, more powerful type of leverage than you probably have ever considered. It’s a new financial path that gives the business owner a tremendous advantage in the competitive world of finance.

Here is how a Credit Card Cash Advance works. Any small business that accepts Visa/MasterCard as method of payment can actually receive working capital/cash today in exchange for a portion of their future credit card billings on a discounted basis. This allows the small business owner to receive a lump sum of cash today, without incurring the debt that a bank loan, a credit card, or other types of credit demands. Credit card advance allows a small business owner to "sell a future asset at a discount", their future credit card sales.

The small business owner does not have to sign personally, put up collateral, or provide a use of funds statement. Application is free, approval usually within 24-48 hours and funding typically within 5-10 days. The obligation is repaid by taking a small % of future Visa/MasterCard credit card sales.