As a business owner looking for ways to get funding quickly, you may be overwhelmed by all the options that are available. From traditional loans to invoice financing, there are a lot of details to research and pay attention to. If your business process a lot of credit and debit card payments, you might be a good candidate for a merchant cash advance. With this type of advance, the lender gives you cash upfront and recoups their money by taking a percentage off each credit and debit card payment.
Easy To Apply For
One benefit of a merchant cash advance is that it is a lot easier to apply for than a traditional loan. The lender will review your tax returns, business plans and financial statements before making a decision. If your business has high credit card sales, you will most likely get the loan. Once you are approved, the money can arrive in your bank account within a week, ready for you to use.
Repayment is Done Automatically
Traditional loans are repaid monthly, with the payment going towards interest and principal. Businesses need to budget a certain amount each month to repay the loan. When it comes to repaying a merchant cash advance, the money is taken directly from the credit and debit card payments to your business. A benefit of this is that there is no minimum payment required. If your business is slow, that doesn’t matter.
A Very Flexible Form of Funding
The money you get from a merchant cash advance is yours to do with what you wish. Although it is smart to use it to grow your business, to make it worth the fees, there will not be anyone hanging over your shoulder checking to see what you do with the money. When you apply for a traditional loan, you usually have to request the money for a specific purpose, such as expanding your inventory or renting a new retail location. The lender would not be pleased if you then used the loan for something else. Merchant cash advance lenders are not concerned with what you do with the advance.
If you don’t have the luxury of waiting for a bank to approve a traditional loan and need money fast, look into a merchant cash advance. This is especially true if you do a lot of credit and debit card sales because the lenders will want to do business with you, which is a win-win for everyone.