{"id":4100,"date":"2020-04-27T23:33:56","date_gmt":"2020-04-27T23:33:56","guid":{"rendered":"https:\/\/swoopfunding.com\/za\/?post_type=knowledge-hub&#038;p=4100"},"modified":"2023-11-29T11:31:48","modified_gmt":"2023-11-29T11:31:48","slug":"business-cash-advance","status":"publish","type":"knowledge-hub","link":"https:\/\/swoopfunding.com\/za\/knowledge-hub\/business-cash-advance\/","title":{"rendered":"Business cash advance (revenue loan)"},"content":{"rendered":"\n <div class=\"faq-accordion faq-accordion1494\">\n <div class=\"card\">\n <div class=\"card-header\" id=\"heading01494\">\n <h5 class=\"mb-0\">\n <a class=\"btn btn-link\" data-toggle=\"collapse\" data-target=\"#collapse01494\" aria-expanded=\"true\" aria-controls=\"collapse0\">\n What is a business cash advance (revenue loan)? <\/a>\n <\/h5>\n <\/div>\n\n <div id=\"collapse01494\" class=\"collapse show\" aria-labelledby=\"heading0\" data-parent=\".faq-accordion1494\">\n <div class=\"card-body\">\n <p><em data-rich-text-format-boundary=\"true\">This newer type of\u00a0<\/em><a href=\"https:\/\/swoopfunding.com\/za\/business-loans\/\"><em>business loan<\/em><\/a><em>\u00a0allows 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.<\/em><br data-rich-text-line-break=\"true\" \/><br data-rich-text-line-break=\"true\" \/>You can borrow from R50,000 to R10,000,000. Term ranges from 3 months to 5 years. Typically costs 2-10%(depending on the product, lender and your business profile)<br data-rich-text-line-break=\"true\" \/><br data-rich-text-line-break=\"true\" \/>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\u00a0<a href=\"https:\/\/swoopfunding.com\/za\/knowledge-hub\/merchant-cash-advance\/\">merchant cash advance<\/a>. You\u2019ll also hear it referred to as a revenue loan, a turnover loan or revenue-based financing.<\/p>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"card\">\n <div class=\"card-header\" id=\"heading11494\">\n <h5 class=\"mb-0\">\n <a class=\"btn btn-link\" data-toggle=\"collapse\" data-target=\"#collapse11494\" aria-expanded=\"true\" aria-controls=\"collapse1\">\n Why choose a business cash advance (revenue loan)? <\/a>\n <\/h5>\n <\/div>\n\n <div id=\"collapse11494\" class=\"collapse \" aria-labelledby=\"heading1\" data-parent=\".faq-accordion1494\">\n <div class=\"card-body\">\n <p>The main purpose of is to ease cash flow against future forecasted income.<br data-rich-text-line-break=\"true\" \/><br data-rich-text-line-break=\"true\" \/>A business cash advance may be useful if you have a seasonal business, because it means you can align repayments to your trading peaks and troughs \u2013 you can pay back more when sales are higher and less when sales are lower.<br data-rich-text-line-break=\"true\" \/><br data-rich-text-line-break=\"true\" \/>It could also be a good option if you find you\u2019re not eligible for a bank loan, but you 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 look at supply chain finance.<\/p>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"card\">\n <div class=\"card-header\" id=\"heading21494\">\n <h5 class=\"mb-0\">\n <a class=\"btn btn-link\" data-toggle=\"collapse\" data-target=\"#collapse21494\" 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=\"collapse21494\" class=\"collapse \" aria-labelledby=\"heading2\" data-parent=\".faq-accordion1494\">\n <div class=\"card-body\">\n <ul>\n<li>Fast access to funds.<\/li>\n<li>No fixed monthly instalments<\/li>\n<li>No collateral required<\/li>\n<li>The principal amount is fixed<\/li>\n<li>Even with poor credit you may find borrowing possible<\/li>\n<\/ul>\n<p>!\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Not a long-term borrowing solution-expensive compared to other options<br data-rich-text-line-break=\"true\" \/>!\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Regular deductions (could be daily!) from your credit or future revenue could seriously hamper growth<br data-rich-text-line-break=\"true\" \/>!\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Often not regulated so both borrower and lender are exposed<br data-rich-text-line-break=\"true\" \/>!\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0As you are borrowing against future revenue, you lose autonomy in your business. You may find that are no longer dictating your business 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=\"heading31494\">\n <h5 class=\"mb-0\">\n <a class=\"btn btn-link\" data-toggle=\"collapse\" data-target=\"#collapse31494\" aria-expanded=\"true\" aria-controls=\"collapse3\">\n Is it suitable for an SME? <\/a>\n <\/h5>\n <\/div>\n\n <div id=\"collapse31494\" class=\"collapse \" aria-labelledby=\"heading3\" data-parent=\".faq-accordion1494\">\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=\"heading41494\">\n <h5 class=\"mb-0\">\n <a class=\"btn btn-link\" data-toggle=\"collapse\" data-target=\"#collapse41494\" aria-expanded=\"true\" aria-controls=\"collapse4\">\n Have you also considered? <\/a>\n <\/h5>\n <\/div>\n\n <div id=\"collapse41494\" class=\"collapse \" aria-labelledby=\"heading4\" data-parent=\".faq-accordion1494\">\n <div class=\"card-body\">\n <p>You might also want to look at\u00a0<a href=\"https:\/\/swoopfunding.com\/za\/knowledge-hub\/supplier-finance\/\">supplier finance<\/a>\u00a0(i.e. supply chain finance).<\/p>\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\u00a0business loan\u00a0allows 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 R50,000 to R10,000,000. Term ranges from 3 months to 5 years. Typically costs 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\u00a0merchant cash advance. You\u2019ll also hear it referred to as a revenue loan, a turnover loan or revenue-based financing.\"\n                }\n            },                                {\n                \"@type\": \"Question\",\n                \"name\": \"Why choose a business cash advance (revenue loan)?\",\n                \"acceptedAnswer\": {\n                    \"@type\": \"Answer\",\n                    \"text\": \"The main purpose of is to ease cash flow against future forecasted income.A business cash advance may be useful if you have a seasonal business, because it means you can align repayments to your trading peaks and troughs \u2013 you can pay back more when sales are higher and less when sales are lower.It could also be a good option if you find you\u2019re not eligible for a bank loan, but you 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 look at 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\": \" Fast access to funds. No fixed monthly instalments No collateral required The principal amount is fixed Even with poor credit you may find borrowing possible  !\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Not a long-term borrowing solution-expensive compared to other options!\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Regular deductions (could be daily!) from your credit or future revenue could seriously hamper growth!\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Often not regulated so both borrower and lender are exposed!\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0As you are borrowing against future revenue, you lose autonomy in your business. You may find that are no longer dictating your business short term operational hours until the loan is paid off!\"\n                }\n            },                                {\n                \"@type\": \"Question\",\n                \"name\": \"Is it suitable for an SME?\",\n                \"acceptedAnswer\": {\n                    \"@type\": \"Answer\",\n                    \"text\": \"Small to medium sized businesses who are unable to access more traditional forms of capital.\"\n                }\n            },                                {\n                \"@type\": \"Question\",\n                \"name\": \"Have you also considered?\",\n                \"acceptedAnswer\": {\n                    \"@type\": \"Answer\",\n                    \"text\": \"You might also want to look at\u00a0supplier finance\u00a0(i.e. supply chain finance).\"\n                }\n            }          ]\n    }\n    <\/script>\n \n","protected":false},"excerpt":{"rendered":"","protected":false},"parent":0,"menu_order":45,"template":"","segment":[295],"acf":[],"featured_image_urls":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","image_blog":"","image_podcast":"","image_banking":"","image_blog_internal":"","image_blog_medium":"","image_single_banking":""},"post_excerpt_stackable":"<p>What is a business cash advance (revenue loan)? This newer type of\u00a0business loan\u00a0allows 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 R50,000 to R10,000,000. Term ranges from 3 months to 5 years. Typically costs 2-10%(depending on the product, lender and your business profile)A business cash advance is a type of&hellip;<\/p>\n","category_list":"","author_info":{"name":"","url":""},"comments_num":"0 comments","featured_image_urls_v2":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","image_blog":"","image_podcast":"","image_banking":"","image_blog_internal":"","image_blog_medium":"","image_single_banking":""},"post_excerpt_stackable_v2":"<p>What is a business cash advance (revenue loan)? This newer type of\u00a0business loan\u00a0allows 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 R50,000 to R10,000,000. Term ranges from 3 months to 5 years. Typically costs 2-10%(depending on the product, lender and your business profile)A business cash advance is a type of&hellip;<\/p>\n","category_list_v2":"","author_info_v2":{"name":"","url":""},"comments_num_v2":"0 comments","_links":{"self":[{"href":"https:\/\/swoopfunding.com\/za\/wp-json\/wp\/v2\/knowledge-hub\/4100"}],"collection":[{"href":"https:\/\/swoopfunding.com\/za\/wp-json\/wp\/v2\/knowledge-hub"}],"about":[{"href":"https:\/\/swoopfunding.com\/za\/wp-json\/wp\/v2\/types\/knowledge-hub"}],"wp:attachment":[{"href":"https:\/\/swoopfunding.com\/za\/wp-json\/wp\/v2\/media?parent=4100"}],"wp:term":[{"taxonomy":"segment","embeddable":true,"href":"https:\/\/swoopfunding.com\/za\/wp-json\/wp\/v2\/segment?post=4100"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}