"Think Big, act big!" That's the mantra of today’s capitalistic world. But acting big requires not only constant effort and concentration, but also a smooth cash flow. No matter where you go, what dreams you chase, you cannot take a single step without money. Financing your dreams the right way is one of the topmost priorities of any individual. Over the years, perspectives of the people have undergone a sea change. Ambitions are on the rise and there is no dearth of people who are striving hard to touch horizons of the so-called 'super success'. To meet these expectations, different financial organizations have come with a host of loan-seeking options to meet the varied interests of different individuals.

Loans are availed by people for a number of purposes, be it personal or professional. Keeping loans for personal purposes apart, let’s talk about business loans. Business loans are availed for a number of reasons- to pay off debts, to purchase new equipments or inventory, to launch advertising and promotional programs or to start any business venture as well. Business loans like working capital financing and business cash advance provide customers with the capital that they need to sort out their financial crisis. However, prior to applying for any kind of loan, it is best to understand its pros and cons so as to avoid any confusion that might arise later. Literally speaking, a working capital loan purports to finance everyday operations of a company. It is not used to buy long-term assets or investments but to clear up account payable, wages, etc. On the other hand, business cash advance is a loan taken out against credit card or line of credit, typically imposing higher-than-normal interest charges.

Working capital loan is one of the traditional ways of loan application. They require comparatively less time to get sanctioned in comparison to other traditional methods of loan application. Prior to applying for a working capital loan, the borrower should not forget to assess his credit history. It is necessary to build a good credit history to get your working capital loan sanctioned. Once your loan gets the green signal, you can invest your capital in the right direction to build up a solid foundation for your business.

In spite of the benefits of working capital loans, there are some areas where business cash advance scores over working capital loans. Before sanctioning a working capital loan, financial organizations look into the credit history, available collateral and various other factors of the borrowers. In contrast, small businesses easily qualify for a business cash advance. Secondly, the time factor plays an important role in deciding which loan to apply for. Working capital loans require a minimum period of two weeks in comparison to duration of around 72 hours for business cash advance. Not only that, sanctioning process of the former involves a lot of paperwork and other formalities, while the latter comprises of minimal hassles. Thirdly, business cash advance is not bound to any fixed repayment schedule. The entire process of repayment is done from the credit card sales receipts of the borrower. This relieves the businesses from feeling an extra pinch in their pockets. On the other hand, working capital loans are tied to a fixed repayment schedule, where borrowers are expected to repay the borrowed amount within the stipulated time. Failure to repay the borrowed amount might result in loss of collateral and even damaging the borrowers’ credit score. This is one of the primary risks that borrowers need to be careful of when applying for a small business loan.

There remains one more area where business cash advance scores over other loan schemes, i.e., cash advances to bad credit holders. Yes! Even borrowers with bad credit score can apply for a business cash advance. So think before you take a stride ahead, for a little negligence on your part can sideline your cherished dreams.