5 Big Benefits of Using a Merchant Cash Advance
Small businesses tend to need a little assistance every now and then. Some extra working capital on hand can really come in handy, and there are various ways to acquire those funds. In addition to traditional loans, business owners can also get a merchant cash advance. This is when a lender provides you with money upfront, and in exchange, the lender receives a percentage of your credit card sales until the advance is paid off in full. There are many ways to benefit from this.
1. Fast Cash
A big reason why companies opt for business cash advances is the fact that the money can be acquired in a short amount of time. That means if you need money now and cannot afford to wait weeks, you can get a quick advance to make essential expenses right now.
2. High Approval Rate
A big reason why loans are occasionally met with trepidation is the fact that the approval rate can vary substantially. Fortunately, with a merchant cash advance, most businesses qualify. One reason for this high approval rating is the fact that these lenders do not look at your credit score, so even if you have poor credit, you could still qualify for an advance.
3. Little Paperwork
Technology has made getting a cash advance even simpler. For many organizations, you can simply fill out all the forms online. You will hear back soon on whether you were accepted and get the cash you need soon. Less paperwork also means there is less likelihood of a mistake being made and the process being delayed.
4. Flexible Repayment
Paying back your merchant cash advance is made simple by the fact that a percentage is taken out of your credit card sales as opposed to a fixed value. This means if your business has a slow month, then you repay a little less. Conversely, a great month means you pay back more, and you are that much closer to completely paying off your debt.
5. No Collateral
Other financing methods require you to put up real estate or other valuable items up as collateral. That is not necessary with a business cash advance. With this, you just need to show that you have strong credit card sales in the past.
A merchant cash advance may not work with every type of financing you could possibly need, but it is an option that is highly useful in certain circumstances. When you need quick cash, an advance might be just what you need.