You know what they say, “life is unpredictable”. So is business – in many ways. From unexpected expenses to opportunities that need spend behind them. You can never tell what is around the corner. And as much as you can plan and put things onto paper, sometimes getting the funding you need can be a lengthy process.
But what if we told you that, as an iKhokha merchant, you get exclusive access to super-fast capital after just 3 months of trading based on your transaction history? It’s true – iK Cash Advance is a customised business loan offer to help you run, grow, and meet your business goals!
Plus, it takes the financial pressure off your business when looking at a new challenge, opportunity or growth. Isn’t that what we all need?
Before we get ahead of ourselves with all the pros of taking an iK Cash Advance, we’re going to clarify the difference between a cash advance and a bank business loan, so you’re 100 percent clear on what to expect.
The differences between a cash advance and a bank business loan
I’m sure you’ve heard of the term cash advance, and you’re most likely to be familiar with bank business loans.
Imagine we had two buckets. One bucket is bigger than the other because it carries more benefits. The one bucket is coming in the form a short-term business loan known as an iK Cash Advance, and the second bucket is any form of a bank business loan.
We’ll let you figure out which one is the bigger one. I’d like to preempt that the purpose of this reading is shed some light on how to get a business loan with the bigger bucket. So, read on!
A cash advance vs bank business loan
Cash advance – is a short-term business loan that offers businesses fast access to capital they need with less restrictive credit requirements and time constraints than most traditional lending methods.
Bank business loans – Business loans are lending agreements made between business owners and banks or private lenders. Banks and lenders are willing to give businesses the money in advance, so long as they pay it back on an agreed-upon schedule, with interest.
What are the disadvantages of bank business loans
The process and paperwork is extensive and takes time
Most bank business loans need you to prove that you’re credible enough to be able to pay the money back. As a small or new business owner applying for a loan, the process may involve long hours and heaps of paperwork before getting to the stage where your loan is either approved or denied.
Typically the paperwork they may ask you to present is:
Your businesses identity
You can present your business information in the form of a business plan. Like your business’s name, address and tax ID, as well as a general outline of your business’s short and long term goals.
Sometimes, they may even request that you present your plans and reasons why you need a bank business loan to motivate for it.
The evidence of financial statements
According to Nerdwallet.com, “Financial statements may include documentation of your annual revenue, such as profit and loss statements, plus tax returns and bank account statements of the business owners and the business itself.”
High interest rates
On top of the extensive paperwork, it’s hard to qualify for a bank business loan. And if you do, you’re going to be paying off high interest rates. As a small business, that’s the last thing you need.
Interest on any type of loan is inevitable.
But, high interest rates on a business loan could mean taking longer to repay it and accruing more interest over time. Unfortunately, for many business owners, this means spending more money paying off their loan, and in the process, stunting their business growth.
On top of that, the chances of qualifying for a short-term loan should an emergency or an opportunity for growth comes your way dwindle.
Let’s say you do qualify for a bank business loan and you are willing to pay off the high interest rates…
You don’t have room to be flexible
Many small businesses experience fluctuation in their business revenue. Signing up for a fixed monthly payment towards a bank business loan may not be the wisest move should you find yourself in a tight spot after a bad month. It could mean that your month’s revenue would go towards covering your loan repayment.
Ultimately, the conditions of such a loan are unfavourable because you don’t have the flexibility to pick a payment term that works best for you.
So, why choose to access more capital with an iK Cash Advance?
It’s super-fast and easy
Compared to traditional business loans, iKhokha’s Cash Advance gives you quick and easy access to funds when you need them at a click of a button. No paperwork. No hassles.
It’s as simple as opening the iKhokha app after just 3 months of trading, selecting iK Cash Advance, and voilà! A customised offer could be yours. And guess what? The funds will reflect in your account in 24 business hours. Just like that!
Easy payback and no compound interest
When we say we make business easier, we mean it.
The way iK Cash advance is designed is for our merchants to ensure they can keep running and growing their business at a steady pace. It’s as simple as repaying your iK Cash Advance with a percentage of your future card sales. The best part? It’s a flat fee with no compound interest.
Your offer is customised and flexible
In business, being practical is the best practice. We customise your offering based on your trading history. This means that we wouldn’t offer you too much or too little. It’ll be just right.
It also means that we’ll match your offer to meet your business needs so that no matter how much your business makes in a given month, you’re still flexible to be able to pay back the advance and keep your business doors open. Which also means you’re risk-free.
*Based on 3 months of trading with iKhokha
The pros of getting an iK Cash Advance
Remember our two buckets from earlier? To refresh your memory, I mentioned that one bucket is bigger than the other because it has more practical benefits for your pocket.
To add to that, there are some excellent and valuable benefits for your business as well.
One of the most obvious reasons business owners need liquid cash is to either keep their business doors open or grab ahold of opportunities.
It’s an excellent choice for expansion
I’ve never heard a business owner say they’re going to go into business just to remain at the same spot they started in.
Business owners are often ambitious, opportunity seekers, and at most times, risk-takers. You’re probably nodding your head because you can relate to one if not all these traits.
If you’ve spotted an opportunity for your business to expand, the only way for that to be possible is if you have access to funding your growth.
When growth calls, it means you’ll need more cash for advertising, renovations, hiring more employees and any other costs that are related to your line of business. You’ve got to spend money to make money.
An iK Cash Advance is the risk-free way you can cover those expenses while giving yourself room to grow and level up your business.
Equipment, equipment, and more equipment
To be a fully operating business, you need equipment to help you get the job done. Equipment can be costly, and over a period, it may get damaged, worn down or outdated.
Budgeting for this kind of expense can slip our minds. If your equipment is damaged or faulty, it disrupts the flow of business. And you can’t afford to not be on top of business.
Whether you need to repair or replace your equipment, an iK Cash Advance is a short-term solution that will work for you if you need funds to manage the costs of the equipment.
Efficient and effective equipment means great service and experience for your customers. All of this means more growth
Invest in inventory
Starting a business has its own set of challenges. And so does running it. A big part of it is when you’ve had a tight month, and now you need to purchase inventory (stock) to keep your business going.
Considering the recent events in our country, business owners have realised you can instantly lose something you’ve worked hard for overnight. We want the solution to be just as instant, so you can get back on your feet again.
With that said, an iK Cash Advance helps merchants stay ahead with the demands of their customers without jeopardising the business’s cash flow.
Keep the cash flowing
Speaking of cash flow, we’re aware that this is a thorn in a small business owner’s side. It becomes a challenge when emergencies like paying staff, utility bills and stock need to be paid for.
An iK Cash Advance offers money to help your business stay afloat when profits are low. When you keep money flowing through your business, you can continue to bring in new customers to drive revenue.
How to get a short-term business loan with iKhokha
Get an iK Cash Advance
You’ve read this far, and we’re sure you’re wondering how do I get the iK Cash Advance?
Go ahead and boost your business
Going back to the two buckets. We’re confident you have the answer and you're right. The bigger bucket most certainly is the iK Cash Advance! We didn’t have to tell you that.
So now that you know how to get a business loan, you know that when you need the cash injection to take your business to the next level or to help you through a difficult time, the iK Cash Advance is in your corner!
Join the iK Tribe today and get access to exclusive iKhokha features to get the most out of your business.