3 Benefits of a Merchant Cash Advance
Every small business needs some financial assistance once in a while. Whether it’s to build up inventory, cover payroll during slow periods, or capitalize on a good opportunity, having access to quick cash is necessary. But sometimes it can be tough to get approved for loans at the bank, considering their very stringent lending rules and criteria.
Luckily, when the banks say no, there are plenty of other alternative lenders that will say yes.
A Merchant Cash Advance Can be the Answer For Your Small Business Financing Needs
A merchant cash advance has become extremely popular these days due to the flexible requirements for approval. This type of loan is secured by future credit card sales, which businesses gradually pay back by having a certain percentage of each credit card transaction deducted until the full loan is paid off.
Here are plenty of benefits of taking out a merchant cash advance, including the following.
- No collateral or credit needed. A merchant cash advance is the perfect option for business owners who have bad credit or don’t have any collateral to offer. While traditional loans from the bank can affect your business credit rating, a merchant cash advance is considered a sales transaction, which means it stays off your credit report. You won’t risk losing any collateral either, which is a common issue when defaulting on a traditional loan.
- Quick access to cash. The application process for a merchant cash advance is so short and easy, allowing for a fast turnaround with working capital loans. Traditional loans can take weeks to process, which means you’d have to wait quite a while before seeing any money. With merchant cash advances, on the other hand, the application and approval process is fast, which means access to cash is fast too.
- High rate of approval. The approval of a merchant cash advance is dependent on your business’s performance and positive cash flow instead of your credit rating. For this reason, just about any stable business can qualify for this type of loan.
Merchant lenders offer small businesses a fantastic alternative to more stringent traditional loan processes. The application process is easy, approval is quick, and access to cash is fast. A merchant cash advance may be exactly what your small business needs!