Business Cash Advance UK Vs. Bank Loans – Which is Better?

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.

1. 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!
2. 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.
3. 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.
4. 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!