
Your Experian Business Credit Report: How to Dissect & Understand It
In this post, we'll explain how Experian calculates your business’ credit score and walk you through the credit report that comes with it.
Almost every small business needs a little extra funding from time-to-time. Maybe you’re just starting out, or maybe sales have been a little slower. Whatever the reason, there are many options to secure extra funding, and a cash advance is one of them.
A merchant cash advance (more commonly called a cash advance), is a financial transaction between your business and an alternative financing company. The company purchases your receivables at a discounted rate, essentially “advancing” your future revenue. This advance amount is the total amount of capital the funding company will advance you.
Merchant cash advances act as commercial transactions, not loans. They are unsecured and used a factor rate, which can be similar to a form of interest. This factor rate represents the discount taken by the merchant cash advance provider that is buying your future revenue.
For example, let’s say you expect future receivables of $10,000, are approved for an advance of $8,500 and are required to pay back the merchant cash advance provider a factor rate of 1.1. This means you’ll be paying back the provider $9,350. Factor rates vary, but generally fall between 1.1 and 1.5. Your rate is based on a number of different things, including business history, average monthly revenue, no negative balance days, other debt obligations and credit card sales. Beyond the factor rate, a cash advance does not involve any upfront fees or charge interest.
So how do you know if a cash advance is the right financial move for your business? Let’s go through a list of advantages and disadvantages.
Based on the above pros and cons, if you decide a merchant cash advance isn’t right for your business, there are other options to find financing.
As a small business, having the cash available to sustain growth is a common challenge. While merchant cash advances are an option, it’s important to know that they’re not your only alternative. There are many ways to get the financing you need to push your business forward — whether that’s to get out of debt, free up cash flow or take on another business opportunity.
For complete details or to sign up, call +1 (877) 662-3489, or complete our online form, and a friendly financial expert will get back to you.
Want to be the first to know when they launch?
In this post, we'll explain how Experian calculates your business’ credit score and walk you through the credit report that comes with it.
Business credit cards offer numerous special benefits geared toward the entrepreneur. These include programs that give you points or cash-back rewards for common business expenses, travel perks that make life easier during company-related trips, higher credit limits, and more. Like a typical personal credit card, a business card provides you with a pre-approved funding source […]
As a small business owner, you know that tracking your expenses can be a chore, especially if you’re doing it yourself. Making company purchases on your personal credit card is a great way to track spending while: Improving your consumer credit score Leveraging consumer protections not offered to business cards Taking advantage of a broader […]
If you own multiple businesses, you can get a Revenued Business Card for each of your companies as long as they can each qualify for the card on their own. Criteria for a card is based on your business’s revenue and bank activity, not on your finances or credit. Continue reading to learn more about […]