What is a Cash Advance company?

A Cash Advance company acts as a third party by advancing cash on their clients’ credit card, debit card, invoice receivables, and purchase order receipts. In return the client pays an agreed upon factor rate with small regular payments (typically paid daily or weekly). In order to pay clients upfront cash for their invoices, there is a Cash Advance fee involved called a factor rate. The Family Business Fund is a unique business run by small business owners, making us very different from banks or other lenders. We use innovative financing to help the small business owner get access to much needed cash flow.

The Family Business Fund provides instant cash flow instead of businesses having to wait for 30, 60, 90, or even 120 days for customers to pay for goods and services. A well-established Cash Advance company will have the systems and people in place to provide professional cash flow services to expedite all funds to your business.

Is Cash Advance a new funding solution?

No. Cash Advance is a centuries-old debtor-financing practice dating back to ancient times. The concept of getting paid by a third party before a customer pays for a good or service likely started when a businessperson with financial resources would advance a craftsman or merchant part of his expected earnings for his goods. Through different networks and knowledge of buyers in other lands, the businessperson would judge the honesty and reliability of the merchant’s buyer and decide if the transaction would be worth the risk of advance payment to the merchant. The businessperson assumes the risk of possible non-payment and charges a fee to protect against times when customers don’t pay.

What does a Cash Advance company do?

A Cash Advance company’s primary business is advancing funds to clients credit card, debit card, invoice receivables, and purchase order sales. A Cash Advance companies will buy future business at a factor rate and provides upfront cash payment to clients for products and services they have been hired to do. Top-tier Cash Advance companies give you access to the cash sitting in your stack of credit card receipts, invoices, purchase orders and accounts receivable on the same day that you submit your documentation.