If you’ve been unable to secure a business loan in other ways, such as by going through a traditional bank or a credit union, then consider a merchant cash advance from companies in Missouri. You shouldn’t think of this kind of advance like a typical loan. Although you’re getting money that you need for your business, the way that the loan is paid back to the company is a bit different. It’s sometimes easier to secure a merchant cash advance, especially if you’ve been in business for some time and you can show that you have sales that are high enough to pay back the loan within the designated time. 

This type of loan works in a simple manner if you already accept credit and debit cards as payment from customers. The company that you decide to apply through in Missouri will usually check your credit and look at how long you’ve been in business. If you’re approved, then you will be given the loan as you would with any other company. Some merchant cash advance companies have a strict policy of when the loan has to be paid back, but there are many that are flexible as long as a minimum payment is made each month. When you get the loan, you can use the money in your business in any way you see fit. When you close your credit and debit card sales at the end of the day, a percentage of the sales is then sent to the merchant as a payment on the loan. This means that you don’t have to worry as much about sending a lump sum of money to the merchant for the money that you borrowed. As long as you have customers in the store and your customers use a card to make a payment, then you will be able to pay back the loan with ease. 

A merchant advance is often an easy way to secure a loan and easier to pay back than other types of loans since you really don’t even have to think about submitting a payment. However, if you don’t have many customers during the day or you don’t have customers who use cards as a payment option, then you might have to contact the merchant to set up another kind of payment for that day. There usually isn’t a collateral requirement, which is beneficial if you are just getting started in your business and need a loan to pay the fees to get your company up and running. This type of loan is also beneficial if you don’t have a good credit score as this is sometimes not looked at as much as your income for your business. 

There is usually a maximum cash advance that you can get as well as a minimum. The maximum is usually $250,000. Keep in mind that you need to ensure that you’re going to have enough business to make the payment. If you have a small business or one that people don’t know about yet, then you might want to start with a smaller loan to see how well the process works. In most situations, you can apply for another loan in the future or add on to the amount that you already have after paying back a certain amount. The merchant is looking for you to show that you have enough sales to make the payment and that you can get the loan paid back within the designated time, which for most companies is 18 months to two years. It usually takes only a few days for you to get approved and receive your money from a merchant cash advance.