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Accentuate Your Business Potential With Merchant Cash Advance Financing
20 Aug 2020
Description

Cash Flow is an important characteristic of a small business that needs to be considered on top priority for the smooth functioning of operations. Cash is indispensable and is required to execute a variety of tasks such as employee remuneration, purchase of raw materials/machinery, and meeting routine expenses, etc. Its requirement stays consistent throughout the life span of a business.

It is an undeniable fact that a significant number of small businesses struggle with acquiring and maintaining their cash flow for reasons pertaining to costs and revenue. Small businesses fear taking the traditional financing route because of its high risk and the constant burden of repayment. Factors of this nature have contributed towards a gradual mentality shift for businesses to opt for merchant cash advance financing.

What is Merchant Cash Financing? 

A merchant cash advance for small business is an alternate source of funding that the proprietor of a business can opt for without having to worry about credit score or collateral. It separates itself from traditional financing options in a variety of ways. Merchant cash funding involves purchasing a portion of the future business credit card sales for a certain discount.

The small business receives a lump sum amount once the contract work is done, and in return, the moneylender pulls out the contract amount from the credit card sales every month.

Why Should A Small Business Entrepreneur Opt For Merchant Cash Advance Financing?

There are a plethora of reasons that solidify merchant cash advance for small businesses as an effective source of money for small businesses.

No Requirement for Collateral or Credit – One of the most prominent advantages of opting for MCA is that it ascertains the acquirement of cash for small businesses in the safest way possible. Other financing sources entail a risk factor of having an adverse effect on the credit score.

Swift Transaction – Another good reason to opt for merchant cash advance for small business entrepreneurs is the total turnaround period. With little paperwork, a merchant cash advance can be processed in a matter of days (around seven days).  

Approval Probability – When comparing merchant cash advance financing to traditional methods in terms of approval rates, MCA shines through. There is rarely a case where a merchant cash advance application is denied.

Easy Payments - One of the biggest challenges small businesses face when acquiring funds from commercial sources is the failure to honor monthly installments. MCA allows businesses to stay focussed on the daily operations as the repayment is collected once the company starts generating revenue

Lump-Sum Amount – Another great reason for entrepreneurs to opt for MCA is that the total lump sum amount is credited into the business account in a week’s time. Perfect for businesses that have planned out the purchase of equipment, vehicle, or any other asset.

Summary: A merchant cash advance is the most effective way for small businesses to realize their cash requirements. The risk quotient is minimal as compared with traditional alternatives followed by an exceptional record for security and transactional ease.

Tags
advance business cash financing for merchant small
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