Are you planning
on starting a new business and want to know about the best way to get some
extra financial assistance? If yes, then you have picked the perfect article to
read. Here, we are going to discuss about the top difference between Business Cash Advance UK and bank
loans. Hopefully, by the end of all the discussion and comparisons, you will be
able to make the right choice for yourself.
- Processing
Times – In case of banks, the time consumed
for the preliminary checking is way longer. Banks will make sure that they
thoroughly check everything about your business. And, if it is a new one,
they will hesitate to grant a loan unless they have an asset given to them
as security. Surprisingly, they grant loans to established businesses very
easily. However, in case of Business Cash Advance UK, the process is a bit
different. They grant unsecured loans to the business, in which they see
some scope or growth prospects. Also, the processing time for getting the
final approval is merely 72 hours and the applicant can get the approved
amount within as less as 14 days. You can’t ever imagine such speedier
processing in case of bank loans!
- Prerequisites – Applying for a bank loans requires you to have the documentation
such as business plan, financial statements, repayment plan, and
projections for business, personal guarantees, stocks/bonds, real estate,
hard goods as equipment and other personal assets. On the contrary,
applying for Business Cash Advance
UK requires no such formalities.
- Payment Plans – In case of bank loans, you are given a set date, on
which you are supposed to pay the interest on the loaned amount. In case
you fail to do so, you are obliged to pay the penalties. However, in case
of business cash advance, you are not pressurized to make monthly payments.
There are some companies such as CNG Business Services, which allow their
customers to make the payment when they get paid. Moreover, there are no
repayment penalties and monthly debit/standing orders.
- Approval Rate – Approval rate of Business Cash Advance is nearly 70% whereas that of
bank loans depends on how many assets you have and how progressive your
business seems to the financial institutions.
So, what do you
think? What will be the best option for your yet-to-be launched business? Business Cash Advance UK or Bank Loan?
Choice is yours!
