National Equipment Financing & Working Capital Blog

Difference between working capital small business loan & cash advance?

Written by Paul Kendall | Dec 10 2013

A small business loan is a true business finance loan with a fixed interest rate and term. A cash advance is not considered a loan. No need to change credit card processor's with a small business loan. With a cash advance you must change processors. On a small business loan lenders report your payment history to the credit agencies. On a cash advance there are no credit benefits. Both products are great for business cashflow needs and both have a quick approval process. Typical uses for both products include inventory, equipment, temporary cash flow management (if your sales volume fluctuates), working capital supplementation, marketing to generate new business, and unexpected business opportunities that you just can't pass up.

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