10 good reasons to consider merchant cash advance for your business
Opting for a merchant cash advance is a decision made by
small business owners every day of the week across this country. If you’re
having a hard time establishing a business line of credit or getting approved
for a business loan, a merchant cash advance may very well be the best option
available to you to help you finance your business.
Here are 10 reasons why a business cash advance makes sense.
- Qualification is easier than with traditional business loans
Banks have a lot of stipulations for businesses that they loan
money to or extend credit lines – cash advances have minimal qualifications and
high approval rates.
- Even with less-than-perfect credit, you can be approved
You don’t have to worry about being approved if you have
less-than-perfect credit, a high credit score is not a major factor in whether
you are can receive business funding from a cash advance.
- Flexible repayment terms – repayment is based on sales
volume, not a flat rate
Some businesses can run into financial hardships with
traditional business loans that require flat-rate monthly payments, but with
merchant cash advances your monthly payments are dependent on your sales
volume. This means that if you have a slow month, you pay back less.
- No personal liability for repayment of the cash advance
Much unlike with business lines of credit and small business
loans, you are not personally responsible for repayment of the advancement.
Many small business loans require that you have a
well-established business (2 years or more) to even consider you for business
funding. With a cash advance, you can receive funding even if your company is
newly in business.
- Can take out more advances as advance is repaid
Most business loans will not be extended as you pay off your
balance, but with a merchant cash advance, you can get more money as you pay
off your advance.
- Gives you more money in your pocket to improve cash
flow
Cash advances can give you the opportunity to receive more
money than you would be able to borrow from a bank.
- Non-restrictive usage on what you use the funding for
Too many times business owners are restricted by what they
can do with their business loans. But, because a cash advance is designed to help
you improve your cash flow, you can use your new funds wherever your business
needs them.
- Frees up time because of the simple application/approval
process
The application and waiting process for a business loan or
even a business line of credit can be outstanding –sometimes you have to wait 30
days just to receive notice of approval from your application, add the wait
time to the back and forth calls, document signing, etc – and it can be an
arduous process. However, by choosing a merchant cash advance, you can quickly
qualify online or by phone.
Gives you money right away
With a merchant cash advance you literally can have your
cash in as little as 72 hours from your applications approval – and most
businesses get their funding in less than a week. Now that’s a simple process