Small business owners like you need to know your options when you need funding fast. Your final funding choice will ultimately make or break your business. Make sure that you are well-versed on your different options and that you know the differences between them. The most common funding source nowadays are traditional bank loans and business cash advances. Therefore, you need to know the following facts to make a good decision:

1. Banks are traditional in handling their finances. They are conservative in terms of approving loan applications. They are more likely to approve loan applications from those businesses that are already established rather than those who are just starting and have not yet made it big. They are particular with this so that they will be sure that the money they will release is going to be on safe and experienced hands.

Business cash advance companies are companies that don't have lots of money as compared to banks, but they are the risk-takers. They assess businesses based on their earning potentials and take it from there.

2. Banks require a lot of paperwork from the small business loan applicants they will be entertaining. Most banks will require you to submit a business plan outlining what you need the money for. Your loan application will most probably not get approved if you do not have one. Also, you may be required to present them your financial statements. You may also need to make business projections, plans for re-payment, and have some collateral. Real estate property, stocks or bonds, and some valuable equipment are among the collateral that these banks may accept. Most of the time, complying with all these requirements is too much of a hassle.

When you go apply for a business cash advance, there is no need to comply with a lot of requirements. You need not go through a lot of hassles since its approval process is fast and easy. Best of all, you need not make any business plans, any re-payment schemes, or present any collateral.

3. Banks will ask you what you need the funding for. You need to have the purpose or purposes specified in your application. They also need to verify if you will really use the money for the purpose/s stated on your business loan application. You need to make sure you have documentations.

When you go for a business cash advance, you do not need to do any of the things mentioned above. The funding that you will be receiving can also be used for any purpose that you wish without the business cash advance company minding it. You, therefore, can have financial freedom, and as long as you know how to budget it properly, you will not have a problem.

4. Traditional loan application processes from banks would mean paying an application processing fee. Business cash advance applications are usually free.

5. Small business loan applications take a long time to get approved, that is, if they get approved. When you go for a business cash advance, you can already get the results in about 24 hours.

If you are a small business owner and you need immediate cash, which would you pick? Now that you know the differences between a traditional loan and a business cash advance, make the right choice.

Craig Lewis writes all about credit and loans, including small business loans and how to apply for a business cash advance. Just go to Credit For Merchants today to learn more.