Business Finance Advance Review


What is Business Finance Advance?

Business Finance Advance offers cash advance services for businesses of any size. Based in Brooklyn, New York, the company uses future credit card sales as payment, and business owners can use the cash advances to finance equipment, pay off debt and increase the amount of their working capital.

A customer service representative also said the company offers lines of credit, credit card splits and equipment financing in addition to cash advances. The Business Finance Advance website, however, does not offer many details about these products.

Compare small business loan offers


Lender highlights

  • Business Finance Advance does not require collateral or personal guarantees. It also won’t file a lien against your property or equipment.
  • Having an existing loan doesn’t disqualify a business from securing a cash advance. In addition, Business Finance Advance tries to work with every business, so a low credit score will not automatically disqualify your business from being approved for funding.
  • It’s important to know how cash advances work. In return for a cash advance, the business agrees to pay back the money with a percentage of future credit card sales. Business Finance Advance takes a percentage of a company’s daily sales — even on slow business days — until the advance is repaid. Although cash advances are typically easier to qualify for, they are generally more expensive than traditional loans.

What Business Finance Advance offers

Business Finance Advance offers a number of financing options that includes lines of credit, credit card splits, cash advances and equipment financing.


Eligibility requirements

Loan product Annual revenue Min. business credit score or personal credit score Time in business
Cash Advance On average, $10,000 per month or $120,000 per year Work with various credit scores, from subpar to exceptional At least 1 year; in some cases six months
Line of Credit Not provided by the lender Work with various credit scores, from subpar to exceptional At least 1 year; in some cases six months
Equipment Financing $3,000 in monthly credit card transactions Work with various credit scores, from subpar to exceptional At least 1 year; in some cases six months

Additional eligibility factors

To receive a cash advance from Business Finance Advance, a business should be able to:

  • Illustrate that it accepts credit cards as a form of payment
  • Make at least $4,000 in credit card sales per month
  • Qualify for Business Finance Advance underwriting guidelines

Business Finance Advance tries to work with all businesses interested in its services.


Pros/Cons

Pros Cons
 Few requirements to apply for a cash advance   Cash advances offer only short-term solutions.
  No personal guarantee or collateral required   A business can’t predict with certainty that it will consistently have sales to repay the cash advance.
  No tax returns required   There is no range for the factor rate, so it’s hard to determine how much a cash advance will cost.

Who is the best fit?

Small businesses with consistently large volumes of credit card sales could manage a cash advance from Business Finance Advance. Businesses with spotty credit history might also benefit from the qualification process, which is not as stringent as a traditional lender’s.


Fine print

The company website does not specify a range for the factor fee. It does, however, outline the various factors that help determine the fee: credit card score, years in business, sales volume and business type. A business interested in a cash advance will need to speak with a sales agent to get specific funding details, including fees.


The bottom line: How Business Finance Advance stacks up

Business Finance Advance can help a business that needs a quick influx of capital, especially one with less-than-perfect credit. The application process is outlined clearly, and the turnaround is quick.

If cash flow has been an issue with your business it’s important to remember that a cash advance offers only a short-term solution. You might also find that you can’t meet other operational obligations because repaying the advance eats up too much of your sales revenue. Businesses that need longer-term solutions might want to consider other funding sources. To find the best deal for your business, always shop around — and make sure you compare cash advances with traditional small business loans.

Compare small business loan offers