If you're a small business that has been impacted by the coronavirus crisis, you may have been dismayed to see that the first round of Economic Injury Disaster Loans have already been exhausted. If you're in need of short-term funding to help carry your business through the coronavirus shutdown, a small business cash advance may be an option. Learn more about applying for a business cash advance online, as well as some of the factors you'll want to consider when deciding whether this is the best solution for you.

How Can You Get a Business Cash Advance Online?

In today's economy, having cash in hand can be key to negotiating extensions on lease due dates, making arrangements with vendors, and taking other steps to keep your business viable. Many lenders offer instant cash advances that can provide you with this liquidity at the time you need it most. 

To apply for a cash advance, you'll just need to input some information into the lender's website. Once you're approved, the cash will be instantly direct-deposited into an account you specify. Depending on the arrangements available through your lender, the loan can be repaid manually or be automatically withdrawn from your account at a date you select. In some cases, you may also be able to renew or roll over the loan by paying some additional interest. 

Is a Cash Advance the Right Option For Your Business?

Like an individual cash advance, a business cash advance offers instant access to cash with lower credit requirements and a higher interest rate than may be available through more conventional sources. When the loan comes due, you'll simply repay what you've borrowed plus any interest that has accrued. If you can't afford to repay the loan when it comes due, you can renew it to give yourself some more time to come up with the money.

But if you're debating your choices, another option to consider is a merchant cash advance. Instead of requiring you to repay the borrowed amount with interest, a merchant cash advance essentially places a lien on future earnings. Once you've earned enough to repay the loan, the lien can be removed. In today's economic climate, with lenders unsure when the U.S. will reopen for business, it may be more difficult to obtain a merchant cash advance than a more traditional business cash advance; however, it never hurts to explore all your options.