How Can Small Business Owners Benefit From Merchant Cash Advances?

Every small business owner needs cash from time to time. However, banks and other traditional money lenders won’t consider your funding request, especially if you have a bad credit score. Where is a business owner supposed to go to get funding? There is a solution for businesses that witness a steady stream of incoming revenues – merchant cash advance for small business. Read on to know how an MCA can help keep your small business alive.

Repay From Future Earnings

Merchant cash advance companies offer an upfront amount of cash in exchange for a portion of future revenues. An MCA allows business owners to borrow against future earnings. Depending on the specific terms of the contract, a cash advance can be repaid on a daily or weekly basis from a portion of business receivables until the entire advanced amount and applicable fees are repaid. This gives small businesses control over repayments and flexibility to repay a smaller or larger amount based on sales volumes.

Use Advance As You See Fit

A merchant cash advance for small businesses is an ideal financing solution for businesses that need cash swiftly or want to fill the gaps of their cash flow due to seasonal fluctuations. There are many ways you can use a cash advance – to pay for inventory that is available at discounted prices, to pay for emergency repairs, to cover payroll during the lean season, to upgrade technology, to open at a new location, to implement a marketing campaign, etc. This funding solution is available to any type of business including retail stores, liquor stores, pharmacies, automotive shops, trucking companies among others.

No Emphasis On Credit Score Or Collateral

Banks and other traditional money lenders consider small businesses to be high-risk and put up several hurdles as part of their due diligence processes – for example, they do not lend to business owners with imperfect credit scores and may ask for collateral. These hurdles sometimes prevent deserving business owners from accessing the funding they need. On the other hand, merchant cash advance providers make it easy for small businesses to access funding. You can qualify for a merchant cash advance with bad credit score if you have steady incoming revenues. Moreover, merchant cash advance companies usually do not ask for collateral.

Lightning Quick Approval Process

From application to approval and transferring an upfront amount to your business bank account, the process for obtaining a cash advance can be completed within hours or 2-3 working days at the most. As soon as you submit a simple online application form providing basic information about your business, the merchant cash advance provider will get to work determining your eligibility and trying to identify a suitable lender in their network. If you qualify, you will receive an offer and if you agree to the terms of the contract, funds are quickly transferred to your business bank account.

A merchant cash advance is an innovative funding solution for micro-businesses, small businesses, and medium-sized businesses that need cash quickly. It takes only a few minutes to apply for an MCA. Go ahead and apply – you have nothing to lose and so much to gain!