Cash advances are a viable option for small businesses, start-ups, and entrepreneurs who need a quick cash stream without a  loan. A cash advance can supply funds in a financial emergency or afford your business the necessary capital to fuel business growth, purchase equipment, or expand locations. Here’s a breakdown of five ways you can utilize this type of financing.

What Is a Cash Advance?

A cash advance is basically a short-term loan that’s pulled from your credit card or a line of credit. Here’s how it works: You borrow against your credit limit and then pay it back with some interest. It offers businesses a flexible solution for bridging their cash flow for unexpected expenses, renovations, or extra capital to invest in a lucrative opportunity. Remember to spend wisely; you must pay back any interest if your balance isn’t paid off on time. So next time you’re in a money crunch, a cash advance might be your ticket to ride.

1. Cover Short-Term Expenses

One of the most common uses for a cash advance is to cover unexpected, short-term expenses. For example, if one of your machines unexpectedly needs repairs or your inventory costs have increased, a cash advance can help you get back on track quickly and without any hassle.

2. Jumpstart Expansion

Looking to expand your empire? A cash advance can be an excellent way to get the ball rolling without having to dip into your savings accounts or other sources of capital. Just make sure you carefully consider all the costs associated with expanding your business before applying for a loan.

3. Invest in New Technology

Technology advances at an extremely rapid pace, and if your business isn’t keeping up, you could miss out on valuable growth and success opportunities. A cash advance can help you invest in new technology, including the latest software or innovative equipment, to streamline daily operations and stay competitive in today’s market.

4. Take Advantage of Opportunities

As the old saying goes, “time is money,” and this couldn’t be more true than when it comes to taking advantage of opportunities that arise in the marketplace. Whether investing in new research or launching a new product line, having access to quick funding can be the difference between success and failure.

5. Improve Your Working Capital

Working capital is something almost every new business struggles with. Accessing funds through a cash advance can help improve your working capital by providing a cash flow separate from long-term debt obligations such as loans or bonds (which take much longer to secure). This type of loan also gives businesses more flexibility when planning their future finances since repayments aren’t due until after the loan is used up.


Cash advances are an excellent source of funding for businesses needing extra cash, from short-term expenses to spur-of- the-moment investment opportunities. Whether for short-term or long-term needs, using a cash advance offers the financial flexibility owners need for success without dealing with long wait times associated with traditional loans from banks or investors. Loans do come with risks. However, if managed well, they provide tremendous value for businesses looking to grow their operations quickly while remaining fiscally ahead of the curve.

Get fast access to extra capital for your business whenever you need it.

Did you know that merchant cash advances have the highest approval rate out of any small business funding? If you’re worried that your not-so-stellar credit will prevent you from getting a loan, here’s some hope: 85% of business owners will be approved for a cash advance. At Proto, our funding managers help you shop and compare different options to ensure you get the most affordable rate possible. You can receive fast cash in as soon as 24. Contact Proto Financial today to learn more about our lending options.