When you need cash to grow your business, a merchant cash advance is a useful option. With this funding type, you can invest in your business or cover payroll. You can use the cash for added liquidity or to cover unexpected expenses. Whether you need to hire new employees or purchase new equipment, the cash advance can be used for whatever your business needs.
What Is a Merchant Cash Advance?
A cash advance is not a business loan. A provider gives you a lump sum payment in return for getting a percentage of your future debit and credit card sales. This type of funding works well for businesses with a poor or limited credit history because your credit is not the main factor. The advance provider only wants to know how much your business normally brings in through credit and debit transactions.
Once the provider knows how much your company earns during credit and debit transactions, they can determine how much you can receive. Unlike an actual loan, you do not have to use any collateral. Your business and personal finances do not have to be placed at risk because this type of advance is not based on collateral at all. It is only designed according to your sales record.
One of the obvious benefits is having extra capital. Even the most successful companies can have a bad month from time to time. When your sales take a hit, you need cash quickly in order to cover expenses like payroll and overhead. An advance is one way for you to get the cash you need when you are stuck in a credit crunch.
When you need money to fund your company, you need it quickly. You do not have time to spend days or weeks waiting for a bank to give you a loan. With an advance, you get approved in just a few minutes. The funding ends up in your bank account within just 24 to 48 hours.
Whether you are a retail shop or a restaurant, you can qualify for a merchant cash advance. Our company works with all types of industries, entrepreneurs and businesses. The only requirement is that you accept credit card or debit payments.
Since you never need collateral for an advance, you do not have to worry about losing your home if your business falters. You do not have to risk getting into a lawsuit if your company collapses. You get to reduce your risk and still get the funding you need.
For entrepreneurs, accessing cash quickly is a constant problem. Most banks require piles of paperwork before they will even consider you for a loan. They will want to know your credit history and how long you have been in business. In most cases, they will want some type of collateral from your personal finances or company. Even with all of this information, it can still take the bank days or weeks to decide if you qualify for their loan. If you do not meet their stringent lending requirements, all of that effort will be wasted.
Whether you are a startup company or a small business owner, this type of funding can help your company grow. You can use it to fund sudden shortfalls in revenue or to invest in new equipment. Through the right funding option, your business can get the financial support it needs to develop and grow.