Merchant Cash Advances Can Benefit Your Business
When your business is in need of some extra funding, there are many options for you to choose from. In fact, there are so many that it can be difficult to determine what is best for your company. For those who operate a smaller business or don’t have a great credit history, a merchant cash advance can be a good choice. This is when you agree to give a portion of your credit card sales to a provider who pays for them upfront. Here are some reasons why you may want to apply for this kind of financing.
1. It is Easy to Apply
A big reason why a cash advance is a good choice is that the application process is relatively simple. While loans can take a long time, sometimes months, to be approved, the timeline is much shorter for a cash advance. You can often be approved and have access to your funds within a week.
2. You Are More Likely to Be Approved
A cash advance is often easier to be approved for as well. The requirements are not as strict as those for a loan, which means they have a higher approval rate. This can be great if you have had trouble receiving a traditional loan in the past.
3. Monthly Payments Are More Flexible
While other types of funding will often require set monthly payments, a merchant cash advance is different. Your payments are based on your company’s revenue, so if you are having a bad month, your payment will be lower. When business picks up, you will have higher payments.
4. You Don’t Need to Put Up Collateral
Because it is not a loan, you will not need to use any of your property or equipment as collateral. This is great, as you will not need to worry about losing your property if you are unable to make your payments.
5. Bad Credit is Not a Deal Breaker
For many struggling business owners, bad credit can make things even more difficult. You have more trouble getting a loan and, if you do, you will likely have a lower credit limit and be required to pay higher interest. When applying for a cash advance, however, low credit scores will not keep you from being approved.
If you need financial help for your business but don’t want to take out a loan or think that you won’t qualify, a merchant cash advance is a good alternative. It can allow you to more easily get the funds you need to grow or expand.