Fri. Aug 23rd, 2019

Things You Need to Know About a Merchant Cash Advance Loan

3 min read
merchant cash advance

Sometimes, when you need business financing of some kind, you need it right away. Unfortunately, traditional business loans and credit lines can take up to a month or more to be approved and get funded, and your business might not have that time to waste waiting. If you need money now, consider getting a merchant cash advance loan instead, which will give you the money you need in a week or less, allowing you to grow or expand your business, or take care of expenses that you couldn’t otherwise afford. A merchant cash advance is given based on your credit card volume. It’s an excellent option for businesses that are credit card merchants and need funding fast.

You can use a merchant cash advance loan to get your business growing and financially able to meet its goals in less than a week, which is much faster than you’ll get financed any other way in your business. There aren’t any application fees, and you won’t have to worry about hidden charges, either, making a merchant cash advance loan a much better option than a traditional business loan or line of credit. The costs will be given to you up front, and you’ll know what you’re getting from day one. It doesn’t matter how little or how much cash you need because each loan is custom created for the individual needs of each business owner.

Merchant cash advance is the best solution for small businesses like hotels, restaurants, professionals, retailers and even small manufacturers. It is a straightforward deal, and one is never beholden to friends or relatives. It is cash on demand, no questions asked. The process is relatively simple, and there are minimum eligibility criteria making is the best source of funding for small business owners. There are many advantages, and the cons are only a few. Consider the benefits of a merchant cash advance loan.

There are many benefits to getting cash advances from merchants.

  • Rapid turnaround time – Even though when the amount a business pays, merchant cash advances are more than the principal and interest they would pay on a conventional bank loan, the short time within which the loan is approved makes this a particularly convenient credit facility when cash is required urgently. Many businesses consider the high cost of the advance to be a less significant problem than the urgency of accessing cash for the business.
  • Merchants place little importance on your credit history – For conventional loans, you must demonstrate a clean credit history. If you have a low credit score, the chances of approval for a loan are slim making borrowing difficult. With cash advances, you need only demonstrate that your business has been receiving credit card sales over the past 60 days. Evidence of cash flow is much more important than credit history when it comes to merchant cash advances.
  • Little or no security required – Merchant advances only need receivables for your credit cards as security. Contrast this with the rigorous requirements when applying for a conventional business loan – you will not only have to submit proof of ability to pay but also provide security such as business equipment and property.
  • Less risk to your assets – In case you are unable to pay back the cash advance, the merchant has to absorb the loss. This is unlike a conventional loan where the lender can possess all items you provided as security and proceed to take you to court to compel you to pay up the outstanding amount.

There are many alternatives to business funding through a merchant cash advance loan, so you should know that it isn’t your only option. It is, however, the fastest and easiest way to get the money that you need for your business. The best part is that your business and personal credit don’t matter because all you need for this type of loan is the credit card sales to back up the money that you need. It doesn’t matter whether you’re expanding your business, adding locations, or just requiring to remodel a little bit. There are many uses for a merchant cash advance loan, and it can be just what your business needs.

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