Cash advances are a great solution for businesses with less consistent cash flows as payments are always based on what you can afford. A merchant cash advance is the preferred option for many businesses that need fast access to capital. Whether you’ve come across a growth opportunity that’s too good to pass up or you need capital to cover the equipment that finally bit the dust, a merchant cash advance has you covered. And you can often get funded in just 24 hours. A merchant cash advance is technically not a loan, but an advance on your future credit card sales. Advance payments are remitted from future receivables, businesses can borrow with confidence knowing that their obligations will never exceed revenue. Small business owners in every industry need capital to survive, and although there are various working capital options available, not everyone is eligible for a loan.
Luckily, there’s still a way to get the capital you need. If you’ve been denied a business loan, you might want to consider a merchant cash advance instead. Merchant cash advances may not be the right choice for every business, but they have numerous perks, especially if you don’t qualify for traditional financing options. If you have the time, the credit and the collateral to go to a major bank and get a loan, then you should consider that, as the cost of the money will be less expensive. However, for all the business owners who need the money now, have poor credit or don’t have any collateral other than the cash flow of their business, an MCA can be an option worth considering. If you have little or no collateral, limited business history, or a low credit rating, merchant cash advances could be a solution to your financing problems.
For businesses that make a big portion of their revenue through credit card payments—if you own a restaurant or a retail store, for example – then you can use a merchant cash advance as a short-term financing tool. It can help with working capital, inventory purchases, debt payments, unexpected payments, and more. For one, merchant cash advances come unsecured. Meaning you don’t have to offer a valuable piece of collateral in exchange for the loan. This can be a benefit for business owners who don’t want to put something like their personal home or financial assets at risk.
This particular kind of financing is incredible, accessible and safe. As well as being highly flexible. It is easy to qualify, and you can manage your loan simply. You can get this type of funding in a few days, and often in less than a week. This quick turnaround can be useful if your business or startup has a unique opportunity or an emergency.