Miami, FL, January, 29th 2020

When it comes to SME owners across the world, every stage of the business is even more challenging for them. Right from planning and launching to expanding and surviving, every step is filled with hard work and persistence. In such a state, a need for funding not only comes up as a roadblock to success but may also result in a wastage of time during urgency. However, with non-bank Business Funding Companies, all funding problems can be solved easily and quickly.

With great funding options like a line of credit and cash advance, small business owners are making their business dreams come true like never before. Since both of these are the best options when it comes to Capital Funding For Small Business, here’s all you need to know about it.

Line of Credit Vs. Cash Advance

A business line of credit is a long term arrangement with Small Business Lending Companies wherein business owners are given a credit limit. They can use it almost like a credit card where a certain sum of money is available and can be withdrawn whenever needed, whereas a merchant cash advance (MCA) is given as an advance on future incomes. It is like purchasing a part of your future credit and/or debit card sales in exchange for a fee. As far as security is concerned, neither a line of credit nor a cash advance requires collateral in most of the non-bank Business Funding Companies. Both are considered as an unsecured type of funding.

You can access any amount between $10,000 and over $1 million with a Business Line of Credit. Your total credit limit, rates, and repayment terms will all depend on your business revenue, credit score, and transaction history, and other factors whereas, Best Small Business Lenders offering an MCA do not require a good credit score as the risk is based on sales figures. However, the usual criteria for a quick approval and better rates include a successful business operation for at least three months, stable monthly overall sales, and no open bankruptcies.

A-Line of Credit is usually available from 6 months up to 5 years, at rates dependent on your creditworthiness and starts accruing once you withdraw the funds which continue until it is repaid. On the other hand, an MCA is repaid through a system called automatic withdrawal. A percentage of daily sales is held back (called holdback) and paid directly to the Online Business Funding company. So if you sell less, you also repay less to your lender, which makes it a bit easier on the business.

Considering all the factors, a line of credit is mostly recommended for short term cash flow needs such as payroll, paying for new equipment, or investing in a business opportunity. However, when businessmen require cash urgently or do not have a perfect credit score to qualify for traditional financing, a cash advance is the best option. If you are also looking for easy and flexible Capital Funding For Small Business, prefer only reputed and trustworthy non-bank Business Funding Companies such as the Mantis Funding and Crest Hill Capital. For more details on flexible cash advance deals, call 800-828-0452 or you can visit at - www.cresthillcapital.com.