Money is vital to your business’s success, especially when owning a small or medium-sized business. In some cases, you can find yourself in situations where a credit card is not a viable source for payments or business improvements, and the excruciatingly long process of a business loan isn’t what banks think your business needs. This is where a merchant cash advance is an effective solution.

Here’s a list of 5 noteworthy advantages that merchant cash advances have to offer:

1. Applying is fast and easy. Merchant cash advances are faster to obtain than bank loans simply because there’s less paperwork, making the process far less bureaucratic than a bank loan. Typically, cash advances are provided in less than a week, some providers like Merchant Lender, even offer same day approval.
2. Bad credit isn’t an issue. Unlike bank loans, merchant cash advances have higher approval rates. Many businesses that can’t qualify for a business loan, do qualify for a merchant cash advance. For example, Merchant Lenders has a 95% approval rate, making it very efficient for you to get the funds you need in order to reach your business objectives.
3. No collateral is necessary. Unlike other credit loans, there is no need to risk your home or other assets for a cash advance.
4. Repay only on the money you make. A cash advance is repaid through a portion of your business’ daily credit/debit receipts. This means the exact amount of money paid back is based on a fixed percentage of your sales until the advance is paid back in full. There is no fixed due date or fixed payments for paying back the advance.
5. No restrictions. You can use the money from a cash advance any way you choose, whether it’s for inventory, renovations or repairs, you have the freedom to manage your business’s cash flow as you need.