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Advantages Of Merchant Cash Advances For Business Owners In Need Of Quick Financing
20 Aug 2020
Description

Need business financing but can’t wait long enough for a bank loan to come through? If your business has a strong credit card and debit card sales, you may qualify for merchant cash advance financing.

Different From Bank Loans

Traditional lenders such as banks do not give major importance to credit card sales to determine eligibility for business loans. They have stringent qualifying criteria and lengthy approval processes that make it near impossible for businesses to get quick funding when they need it the most. Merchant cash advance financing is designed for businesses with credit card and debit card sales. This means that even small businesses, such as liquor stores or retail stores, that notch up significant volumes of card sales can qualify for merchant cash advances.

Provides Quick Access To Funds

A cash advance is a suitable funding solution when you need cash immediately – either to cover an emergency cash flow situation or to take advantage of a business opportunity. Applying for an online merchant cash advance takes just a couple of minutes – all you have to do is provide some basic documentation such as your driver’s license, last three business bank account statements, and a canceled check from your business checking account. Merchant cash advance lenders offer financing to clients that have been in business for at least six months and have good, not necessarily perfect, credit history. 

Repay From Percentage OF Card Sales

As soon as you are approved for a cash advance and agree to the terms of the contract, a merchant cash advance lender will transfer an upfront amount to your business bank account. The whole process from application to approval and funding is completed within days and clients are free to use funds for any business-related purpose. In exchange, the borrower remits a percentage of credit card or debit card sales on a daily or weekly basis until the entire amount and applicable fees are paid off. This repayment model also delivers flexibility - business owners can remit more when they have more sales or remit less when they have low sales.

Can Be Used For Any Purpose

Reputed merchant cash advance lenders welcome funding requests from all types of businesses including automotive repair shops, drug stores, retail stores, liquor stores, salons, trucking companies, and many others. Funding amounts range from five thousand dollars to five hundred dollars depending on the funding company and particular circumstances of the applicant. Common uses of a cash advance against credit card or debit card sales include covering emergency repairs, debt refinancing,  meeting payroll expenses in the lean season, hiring additional staff in peak season, purchasing inventory, opening at a new location, remodeling, and upgrading technology to name a few. 

The beauty of an online merchant cash advance is that it does not require collateral. To determine if a cash advance is the right solution for your financing needs, contact a merchant cash advance financing company, and talk to one of their funding specialists!

Summary: Although merchant cash advances sometimes get negative publicity, they are an attractive solution when business owners need quick financing to sustain or grow their business.

Source URL - https://sites.google.com/view/moneymattersnowonline/advantage-of-merchant-cash-advances-for-business-owner-in-need-of-financing

Tags
advance cash financing lender Merchant
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