What do you do if you are a small business owner looking for some extra money? Maybe it is around the holiday and you have slowed to a creep but you still need to pay your bills to keep the business running until it picks up again. The answer could fall into your lap as a merchant cash advance. It is not a loan from the bank it is a way that business owners receive capital now based on future credit sales.
With merchant cash advances you will find that the requirements to obtain one are not a stringent as if you were applying for a business loan. Usually merchant cash advances are flexible with easier eligibility requirements than with financial institutions loans. It is an accessible option to explore because you also don’t have to lay down specifically what the money will be used for within the business.
The cash advances are given based on your future credit business. This means that in turn for capital now you give the merchant cash advance lender the write to debit you through your credit card processing company a percentage of sales, agreed upon by both parties, until the debt is paid off. The nice thing about this is that payment is based on money brought in and not predetermined. If you are having a slow business period it will take longer to pay off the cash advance where as if you are super busy the opposite happens and the advance is paid off sooner.
Often new business owners take out loans which require a set amount each month no matter what the business is bringing in. It is hard to see a profit in a new business when all of your working capital is already hedged for loans. Merchant cash advances allow for the great advantage to be paid back as you make the money. The percentage amount that is determined to be distributed from the credit cards is predetermined and does not change of the course of the advance.
If you are looking for a flexible and easy to access way to get extra working capital for your company a merchant cash advance may be the way to go. It is necessary with any financial business decision that you seek the advice of business partners as well as financial consultants such as your accountant. They will help determine if this is a sound financial investment for you to make.
You will find that it has several key benefits over a traditional loan form a bank lender. It is much quicker and easier to apply for and you are not required to supply the documentation you would have to with a loan. It is also much easier to qualify for a merchant cash advance it is related more to your credit card processing history than your credit score. Usually you can have an answer on your advance within three days and the risk is all on the company who advances the money to you.