{"id":4100,"date":"2020-04-27T23:33:56","date_gmt":"2020-04-27T23:33:56","guid":{"rendered":"https:\/\/swoopfunding.com\/na\/?post_type=knowledge-hub&#038;p=4100"},"modified":"2025-08-18T08:45:32","modified_gmt":"2025-08-18T08:45:32","slug":"business-cash-advance","status":"publish","type":"knowledge-hub","link":"https:\/\/swoopfunding.com\/na\/knowledge-hub\/business-cash-advance\/","title":{"rendered":"Business cash advance (revenue loan)"},"content":{"rendered":"<div class=\"aivoov-player-block\">\n\t<div class=\"read_this\">Read this article to me<\/div>\n\t\t\t<style>\n\t\t\t.plyr__controls .plyr__controls__item:first-child{\n\t\t\t\tbackground:#2e9c8e !important;\n\t\t\t}\n\t\t\t:root{\n\t\t\t--plyr-color-main:#2e9c8e;\n\t\t\t--plyr-audio-controls-background:#f0f2f4;\n\t\t\t--plyr-audio-control-color:#546a7b;\n\t\t\t}\n\t\t\t[data-plyr=\"mute\"]{color:#2e9c8e !important}\n\t\t\t.aivoov-text-color{color:#546a7b}\n\t\t<\/style> \n\t\t<div class=\"audio_player\">\n\t\t<audio class=\"js-player\" controls=\"\">\n\t\t\t<source src=\"https:\/\/monky-voice-over.s3.amazonaws.com\/aivoov\/781640cc-7bc1-4bbf-9492-22dedc19678b\/219e1bbc-d1c1-4793-8bd9-210b2385e73b.mp3\" type=\"audio\/mp3\">\n\t\t\t<source src=\"https:\/\/monky-voice-over.s3.amazonaws.com\/aivoov\/781640cc-7bc1-4bbf-9492-22dedc19678b\/219e1bbc-d1c1-4793-8bd9-210b2385e73b.mp3\" type=\"audio\/ogg\" \/>\n\t\t<\/audio> \n\t\t\t\t <div class=\"powerd_by aivoov-text-color\"><p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"http:\/\/aivoov.com\/?um_source=plugin_powered_by\" style=\"color: inherit;\">Powered by AiVOOV<\/a><\/p><\/div>\n\t\t \n\t\t<\/div>\n\t\t<\/div>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n <div class=\"faq-accordion faq-accordion788\">\n <div class=\"card\">\n <div class=\"card-header\" id=\"heading0788\">\n <h5 class=\"mb-0\">\n <a class=\"btn btn-link\" data-toggle=\"collapse\" data-target=\"#collapse0788\" aria-expanded=\"true\" aria-controls=\"collapse0\">\n What is a business cash advance (revenue loan)? <\/a>\n <\/h5>\n <\/div>\n\n <div id=\"collapse0788\" class=\"collapse show\" aria-labelledby=\"heading0\" data-parent=\".faq-accordion788\">\n <div class=\"card-body\">\n <p>This newer type of <a href=\"https:\/\/swoopfunding.com\/na\/business-loans\/\">business loan<\/a> allows you to \u2018sell\u2019 a portion of your company\u2019s revenue in exchange for an advance of capital. So, instead of paying back a fixed amount each month, as you might do with a traditional loan, you pay the lender an agreed percentage of your monthly sales until the advance, including interest, is paid off in full.<\/p>\n<p>You can borrow from N$50,000 to N$10,000,000. Terms range from 3 months to 5 years and typically cost 2-10% (depending on the product, lender, and your business profile).<\/p>\n<p>A business cash advance is a type of lending that\u2019s based on your future revenue. It comes in a few different forms, the most common of which is a <a href=\"https:\/\/swoopfunding.com\/na\/knowledge-hub\/merchant-cash-advance\/\">merchant cash advance<\/a>. You\u2019ll also hear it referred to as a revenue loan or revenue-based financing.<\/p>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"card\">\n <div class=\"card-header\" id=\"heading1788\">\n <h5 class=\"mb-0\">\n <a class=\"btn btn-link\" data-toggle=\"collapse\" data-target=\"#collapse1788\" aria-expanded=\"true\" aria-controls=\"collapse1\">\n Why choose a business cash advance (revenue loan)? <\/a>\n <\/h5>\n <\/div>\n\n <div id=\"collapse1788\" class=\"collapse \" aria-labelledby=\"heading1\" data-parent=\".faq-accordion788\">\n <div class=\"card-body\">\n <p>The main purpose of a business cash advance is to ease cash flow against future forecasted income.<\/p>\n<p>A business cash advance may be useful if you have a seasonal business because it allows you to align repayments with your trading peaks and troughs\u2014paying back more when sales are higher and less when sales are lower.<\/p>\n<p>It could also be a good option if you find you\u2019re not eligible for a bank loan but don\u2019t want to part with company equity. Business cash advances are more expensive than bank loans. Perhaps the most popular type of business cash advance is the merchant cash advance. You might also want to consider supply chain finance.<\/p>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"card\">\n <div class=\"card-header\" id=\"heading2788\">\n <h5 class=\"mb-0\">\n <a class=\"btn btn-link\" data-toggle=\"collapse\" data-target=\"#collapse2788\" aria-expanded=\"true\" aria-controls=\"collapse2\">\n Pros and Cons of a business cash advance (revenue loan)? <\/a>\n <\/h5>\n <\/div>\n\n <div id=\"collapse2788\" class=\"collapse \" aria-labelledby=\"heading2\" data-parent=\".faq-accordion788\">\n <div class=\"card-body\">\n <p><strong>Advantages<\/strong>:<br \/>\n&#8211; Fast access to funds.<br \/>\n&#8211; No fixed monthly instalments.<br \/>\n&#8211; No collateral required.<br \/>\n&#8211; The principal amount is fixed.<br \/>\n&#8211; Even with poor credit, you may still find borrowing possible.<\/p>\n<p><strong>Disadvantages<\/strong>:<br \/>\n&#8211; Not a long-term borrowing solution; it is expensive compared to other options.<br \/>\n&#8211; Regular deductions (potentially daily) from your credit or future revenue could seriously hamper growth.<br \/>\n&#8211; Often not regulated, so both borrower and lender are exposed to risks.<br \/>\n&#8211; As you are borrowing against future revenue, you may lose some autonomy in your business. This could affect your ability to dictate short-term operational hours until the loan is paid off.<\/p>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"card\">\n <div class=\"card-header\" id=\"heading3788\">\n <h5 class=\"mb-0\">\n <a class=\"btn btn-link\" data-toggle=\"collapse\" data-target=\"#collapse3788\" aria-expanded=\"true\" aria-controls=\"collapse3\">\n Is it suitable for an SME? <\/a>\n <\/h5>\n <\/div>\n\n <div id=\"collapse3788\" class=\"collapse \" aria-labelledby=\"heading3\" data-parent=\".faq-accordion788\">\n <div class=\"card-body\">\n <p>Small to medium sized businesses who are unable to access more traditional forms of capital.<\/p>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"card\">\n <div class=\"card-header\" id=\"heading4788\">\n <h5 class=\"mb-0\">\n <a class=\"btn btn-link\" data-toggle=\"collapse\" data-target=\"#collapse4788\" aria-expanded=\"true\" aria-controls=\"collapse4\">\n Have you also considered? <\/a>\n <\/h5>\n <\/div>\n\n <div id=\"collapse4788\" class=\"collapse \" aria-labelledby=\"heading4\" data-parent=\".faq-accordion788\">\n <div class=\"card-body\">\n <div class=\"flex flex-grow flex-col max-w-full AIPRM__conversation__response\">\n<div class=\"min-h-[20px] text-message flex w-full flex-col items-end gap-2 whitespace-pre-wrap break-words [.text-message+&amp;]:mt-5 overflow-x-auto\" dir=\"auto\" data-message-author-role=\"assistant\" data-message-id=\"d1289bb5-8c0f-4788-bc56-82910fa1bf27\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden first:pt-[3px]\">\n<div class=\"markdown prose w-full break-words dark:prose-invert dark\">\n<p>You might also want to look at <a href=\"https:\/\/swoopfunding.com\/na\/knowledge-hub\/supplier-finance\/\" target=\"_new\" rel=\"noreferrer\">supplier finance<\/a> (i.e., supply chain finance.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n \n <script type=\"application\/ld+json\">\n    {\n        \"@context\": \"https:\/\/schema.org\",\n        \"@type\": \"FAQPage\",\n        \"mainEntity\": [\n                                {\n                \"@type\": \"Question\",\n                \"name\": \"What is a business cash advance (revenue loan)?\",\n                \"acceptedAnswer\": {\n                    \"@type\": \"Answer\",\n                    \"text\": \"This newer type of business loan allows you to \u2018sell\u2019 a portion of your company\u2019s revenue in exchange for an advance of capital. So, instead of paying back a fixed amount each month, as you might do with a traditional loan, you pay the lender an agreed percentage of your monthly sales until the advance, including interest, is paid off in full. You can borrow from N$50,000 to N$10,000,000. Terms range from 3 months to 5 years and typically cost 2-10% (depending on the product, lender, and your business profile). A business cash advance is a type of lending that\u2019s based on your future revenue. It comes in a few different forms, the most common of which is a merchant cash advance. 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You might also want to consider supply chain finance.\"\n                }\n            },                                {\n                \"@type\": \"Question\",\n                \"name\": \"Pros and Cons of a business cash advance (revenue loan)?\",\n                \"acceptedAnswer\": {\n                    \"@type\": \"Answer\",\n                    \"text\": \"Advantages: &#8211; Fast access to funds. &#8211; No fixed monthly instalments. &#8211; No collateral required. &#8211; The principal amount is fixed. &#8211; Even with poor credit, you may still find borrowing possible. Disadvantages: &#8211; Not a long-term borrowing solution; it is expensive compared to other options. &#8211; Regular deductions (potentially daily) from your credit or future revenue could seriously hamper growth. &#8211; Often not regulated, so both borrower and lender are exposed to risks. &#8211; As you are borrowing against future revenue, you may lose some autonomy in your business. 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This newer type of business loan allows you to \u2018sell\u2019 a portion of your company\u2019s revenue in exchange for an advance of capital. So, instead of paying back a fixed amount each month, as you might do with a traditional loan, you pay the lender an agreed percentage of your monthly sales until the advance, including interest, is paid off in full. You can borrow from N$50,000 to N$10,000,000. Terms range from 3 months to 5 years and typically cost 2-10% (depending on the&hellip;<\/p>\n","category_list_v2":"","author_info_v2":{"name":"edwardz","url":"https:\/\/swoopfunding.com\/na\/author\/edwardz\/"},"comments_num_v2":"0 comments","_links":{"self":[{"href":"https:\/\/swoopfunding.com\/na\/wp-json\/wp\/v2\/knowledge-hub\/4100","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/swoopfunding.com\/na\/wp-json\/wp\/v2\/knowledge-hub"}],"about":[{"href":"https:\/\/swoopfunding.com\/na\/wp-json\/wp\/v2\/types\/knowledge-hub"}],"author":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/na\/wp-json\/wp\/v2\/users\/52"}],"version-history":[{"count":3,"href":"https:\/\/swoopfunding.com\/na\/wp-json\/wp\/v2\/knowledge-hub\/4100\/revisions"}],"predecessor-version":[{"id":44528,"href":"https:\/\/swoopfunding.com\/na\/wp-json\/wp\/v2\/knowledge-hub\/4100\/revisions\/44528"}],"wp:attachment":[{"href":"https:\/\/swoopfunding.com\/na\/wp-json\/wp\/v2\/media?parent=4100"}],"wp:term":[{"taxonomy":"segment","embeddable":true,"href":"https:\/\/swoopfunding.com\/na\/wp-json\/wp\/v2\/segment?post=4100"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}