As you’ve worked hard to expand your company, you may have taken cash advances or loans to help spur growth and keep business going strong. Some of these cash advances or business loans may have high interest rates or high monthly payments. Consolidating these loans and cash advances into one line of credit may help to reduce your monthly payments and lower your interest rates, allowing you to pay less overall or extend the terms of your contract.
With Allied Financial Corporation, we offer working capital lines of credit that can provide a cash advance consolidation solution for your business loans.
Why Working Capital Lines of Credit are a Good Alternative to Cash Advances
Cash advances offer up a sum of cash in exchange for future sales. Unlike loans, cash advances are paid back with a fixed daily or weekly debit from your bank account until the advance is paid in full. Typically, these cash advances come with hefty fees that may range between 1.2 to 1.5 times the cash advance. So if you receive a $100,000 cash advance with a fee factor of 1.4, you’ll owe $140,000. Because of these significant fees, it makes them very difficult to pay back. These cash advance companies often use this method to keep companies coming back for more cash advances, which can ultimately be detrimental to the business.
With Allied Financial Corporation, we offer working capital lines of credit with lower interest rates than that of the typical ACH merchant cash advances. These lines of credit don’t require you to make daily or weekly payments, and they don’t take a percentage of your credit sales.
How can a working capital line of credit help me?
If you have several different loans or cash advances from different companies, you can consolidate those monthly payments into one simple payment by using a working capital line of credit. A working capital line of credit can also help provide future cash flow control by offering a revenue stream to bridge cash flow gaps.
Working capital lines of credit can help business owners plan ahead for sales growth or bridge the gap between accounts payable and payments received. They can also help provide a flexible and stable source of funds.
Contact Allied Financial Corporation for a Working Capital Line of Credit
Help provide your small to mid-sized business relief from the ACH cash advance cycle with a working capital line of credit with Allied Financial Corporation. Contact us today through our online contact form to find out more information.