The 5 Advantages of a Merchant Cash Advance
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:
- 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.
- 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.
- No collateral is necessary. Unlike other credit loans, there is no need to risk your home or other assets for a cash advance.
- 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.
- 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.