Financing Blog

5 Reasons to Consider Using a Merchant Cash Advance

A merchant cash advance is a great option for those small businesses that are just starting now and need that extra little bit of cash flow to really get things moving. This option provides businesses with the cash they need right away, and handles repayments by taking a percentage of the income from credit card sales that occur throughout the company’s everyday operations. There are many clear benefits associated with taking this course of action, and you should consider each of them closely before making your final decision on whether or not this is the right course of action for your company.

Faster Cash

While banks and other traditional lenders can take weeks or months to even process your request, companies offering a merchant cash advance can get your money into your hands within days or even hours of submitting the application. This means your business development never has to slow down to wait on funds.

Less Paperwork

Typically, everything involving the cash advance will be done online, meaning there’s less paperwork for you and your employees to worry about. This means you can spend your time focusing on the things that really matter for your business, like expanding and reaching new customer bases.

Flexible Repayment

One major problem for any small business seeking financial support is their initial inability to pay back large monthly sums for loans. Fortunately, the merchant cash advance eliminates this issue. Repayment is not fixed on a monthly basis. Rather, the lender simply takes a small percentage of the credit card sales that you perform throughout the regular business day in the form of an agreed-upon fee. This means that experiencing a slow day won’t completely destroy your finances, and you’re free to handle business as usual.

Great Approval Rates

Because this arrangement is relatively risk-free for lenders, getting approved is typically a breeze. This is especially good news if you have poor personal credit or if your business has been experiencing trouble with getting off of the ground in the current economy.

No Collateral Needed

You need your equipment in order to make your business work, so putting it up for collateral may not always be an option. Fortunately, this arrangement doesn’t require any form of collateral on your part, leaving you free to use your assets as you’d like to make your business a better place.

These are all reasons why you should consider using a merchant cash advance the next time you find yourself looking for financial support for your business. It’s a safe, smart and forward-thinking solution to your cash flow needs.