Merchant Cash Advance is a specific type of funding mechanism for small businesses that allow the business to get necessary capital. The business receives a lump sum up front and pays it back through a percentage of future receipts.
This type of business financing has worked quite well for inventory purchases, capital expenditures, etc. Many types of business benefit, such as retail, trucking, auto sales, construction, hospitality businesses, restaurants. The business could be healthy in a number of ways but could be experiencing challenges that make it difficult to get a bank loan on a timely basis. A merchant cash advance allows the business to continue operating, expanding, and even buy necessary equipment while paying for its capital with a fluctuating payment scheme based on revenues.
With that in mind, here are five benefits to getting the cash advance you need to keep running your business:
- Get approved more quickly – Bank loans take weeks or months to get approved. A merchant cash advance is typically done in days. Due to technology, the industry has made it possible to be approved the same day you apply. Online applications facilitate the process and keep it secure.
- High credit ratings are not necessary – Many merchant cash advance companies don’t even bother to check your credit. Because the capital is set aside for business purposes, merchant cash advance companies don’t rely heavily on your credit.
- Get your business funded within 48 hours – No bank is ever going to get money into your hands this quickly. Once approved, you can have your money in your hand within 48 hours. In some cases, you can have it as early as 24 hours. Either way, you’ve got the capital you need to keep your business operations going.
- Flexibility in how you use your funds – While there are stipulations that you can’t use merchant cash advance money for certain types of business activities, those restrictions are few. It’s much more flexible than a loan. You can hire new employees, purchase inventory or equipment for your business, increase marketing, promote new products, expand your facilities, and more. This is your money and you can use it how you want.
- Flexible funding structures – Today’s merchant cash advance business is fast and flexible. Not only can you get funding quickly, but you can structure repayment terms in a number of ways. Repayment sums are flexible, the terms can be structured according to how your business is set up.
A merchant cash advance is a strong and flexible business financing arrangement. You can grow and expand your business with a sound mind.