In your opinion, do you think it's worth it for a new business to take out a cash advance and pay via.........

A portion of their credit card sales? Why or Why not?





Before people go criticizing I am JUST WONDERING

In your opinion, do you think it's worth it for a new business to take out a cash advance and pay via.........
Nope.......you should have at least one year of operating expenses before opening a business...........
Reply:Not really, unless there is going to be a solid return from however the cash advance is used. Cash advances from credit cards have higher interest rates and payments on the card usually pay off all the regular charges before the cash advances so the credit card company gets to keep charging the higher interest rate.





It doesn't really matter where the payment comes from income is income. However, since retailers pay a portion of each transaction to the credit card company, the actual net profit is less on card transactions vs cash.





If there is a need for cash, a short term loan is often a better option than a cash advance from a card.
Reply:I would recommend trying to get a bank loan before using a cash advance. Cash advances typically come with higher interest rates over the time it get repaid. If you're up against the rails and that's the only option to get employees paid or pay suppliers, then I would say go for it -- but be very careful.