If you run a business and would like more funds to expand your operation, you are likely wondering where you should start. Like other business owners, you probably think going to the bank and getting a standard loan is the best option.
Unless you have been in business for a while and have an excellent credit score, standard loans might not be an option. The good news is that you can still apply for a merchant cash advance in Kentucky. When you get a cash advance, you can enjoy the same benefits as other loan types without many of the downsides. Cash advances, though, are not perfect, so you must also look at the pros and cons before making your final decision.
Pros and Cons
Before taking action, it’s time to look at the benefits and downsides so that you move forward with a complete picture. Getting a merchant cash advance gives you these impressive benefits:
- Prompt Approvals
- Bad Credit Won’t Stop You
- Fast Funding
Unlike applying for other loans, you won’t need to do complex paperwork or pass a strict credit check to access the funds your business needs. You will decide the amount you want to borrow and fill out the application, and the lender will send the funds to your account within a few days if you qualify.
Merchant cash advances offer a variety of attractive benefits but are still not perfect. As far as most people who take this path are concerned, the biggest downside to cash advances is that they have much higher service fees than you would pay with other lending solutions.
If we still have your attention and you want to learn more, review the requirements to determine if you qualify for a merchant cash advance in Kentucky. You must have a credit score of around 520 or higher, and your business needs to have been around for at least 24 months. The final requirement is that you have to accept credit card payments when selling products or services to your customers.
Take a long look at your records to decide if you meet the standards required by most business lenders in your area, and it can save you a lot of trouble. You can still ask lenders in your area to consider giving you a loan if you don’t meet these requirements, but don’t be surprised if you don’t get the outcome you had in mind.
How It Works
You are now ready to learn how a merchant cash advance works, which helps you decide if you are on the right track. Knowing the steps involved in this type of loan removes your doubt and empowers you to move forward with confidence and peace of mind.
After you apply for the loan and provide the required documentation, the loan officer decides whether or not to grant your loan request. If you get the green light to proceed, you will get your funds within two or three days. The lending company will deduct a portion of your credit card payments until you have repaid the loan.
Decide if a Merchant Cash Advance Is Right for You
Some people get a loan without looking at all their options, a mistake that causes them to select the wrong path. Instead of making their mistake, you must consider your options and decide what path you want to take. A cash advance is a great option if you have poor credit and don’t want to list your assets as collateral. If you have a healthy credit score and plenty of assets, other lending options might make a little more sense for you.
A merchant cash advance comes with higher fees than other lending options. Despite the higher fees, merchant cash advances offer enough benefits to be an attractive solution for countless business owners across Kentucky and the nation. You can apply with a poor credit score and not have to list your assets as collateral to secure the loan.
When you want fast lending solutions so that you can keep your business on track, a merchant cash advance will meet your needs and provide you with the resources required to make your business thrive. An easy process, fast funding and few requirements are what you can expect if you opt for a merchant cash advance in Kentucky.