Should cash loans be used for a small business?

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KEY FACTS

  • A Club Money cash loan is a consumer loan that can be used for any personal purpose.
  • There are many other options available for small business when it comes to finance.
  • A cash loan could be used if you are experiencing a personal shortage of cash, which could be linked to a small business.

IDEAL USES FOR A cash LOAN

It’s no secret that cash loans, also known as cash advances or instant loans, are one of the easiest and fastest ways to get cash when you’re a bit short. At Club Money, we provide cash loans of up to $1,500 quickly, direct to your bank account.

However, a cash loan is really only ideal for personal circumstances, such as needing a bit of a cash advance before cash. Ideal situations for cash loans include:

  • Replacing a broken appliance
  • Urgent repairs around the home
  • Car repair and servicing
  • Moving home or preparing for job

WHY A cash LOAN SEEMS ATTRACTIVE FOR A SMALL BUSINESS

There are many reasons why a cash loan seems ideal for a use on a small business. Some of the features of cash loans include:

  • Fast, cash loan – same day approval
  • Unsecured loan – no assets required
  • A bad credit history is okay
  • No requirements for use
  • Small amounts available
  • Easy, quick, online application process

Business loans, by contrast, can be more difficult to secure. Business loans for small business can be complicated, and may have requirements in the form of security, such as a business asset, as well as restrictions on what the loan can be spent on and extensive credit history checks. These obstacles can seem like a distraction if all you need is some instant cash.

In most situations, however, it is not recommended to use personal debt in a business. There are a number of other options available to a business.

LOAN OPTIONS FOR SMALL BUSINESS

A personal cash loan may not be suitable for a business, but the good news is that there are a number of business-focused loans and finance options available. Have you considered any of these?

  • Business credit card – Ideal for small amounts and directly linked to your business.
  • Supplier/trade credit – A good solution when you are experiencing cash flow timing issues.
  • Unsecured business loans – Small amounts for business are often available with no security requirements.
  • Secured business loans – For larger loan amounts, an asset is often required as loan security.
  • Equipment finance – Specialised finance for a single purpose, using the equipment as security.

NORMAL CRITERIA FOR A BUSINESS LOANS OR FINANCE

Depending on the type of business loan, there will be certain criteria that your business will need to meet, especially for larger loan amounts. Some common business loan criteria include:

  • The age of the business – Some loans require that you have been in the business for a minimum amount of time, and/or you have been in the same premises for a minimum amount of time.
  • Sales requirements – You may need to be able to prove that your business generates a minimum amount of sales.
  • Security – You often have to attach an asset or property as security for the lender.
  • Credit and borrowing history – Credit records, including payments to the ATO, need to be up to date and existing borrowing may need to be within approved limits.

SHORE UP YOUR PERSONAL CASH FLOW SHORTAGES WITH CLUB MONEY

Although a cash loan may not be the perfect fit for small business finance, they are a perfect fit for many personal finance needs. If you need fast cash, without the hassle of signing up to a credit card or jumping through hoops for a personal loan, then a cash loan is hard to beat.

WHY GO WITH CLUB MONEY?

  • Fast approval – After applying you will receive approval within 30 minutes on a regular business day.
  • Direct transfer into your bank account – If approved, we will send money to your nominated bank account.
  • Repayment plan – We provide you with a recommended payment plan to help you manage loan repayment.
  • Missed payments – If you do run into unexpected financial trouble, we are here to help. We encourage our customers to talk to us if they are experiencing difficulties in repayments.

Let’s do it! Apply now.