Merchant Cash Advances Can Benefit Your Business
Every business needs cash to grow. Without it, there is no way to pay suppliers, maintain inventory or complete payroll. Anything can cause funds to dry up and many of these reasons lie outside of your control. If you require instant funds to stay operating, consider acquiring a merchant cash advance over a commercial bank loan. Below are a few reasons why this style of funding makes a great alternative.
Bad Credit Is Okay
When applying for backing through a traditional venue, surmounting a negative credit rating can be impossible. Even if your score is below 500, merchant cash advancers will entertain your request. Just demonstrate that you process a high number of credit card sales every month and these financiers will be willing to work with you.
Applications Are Simple and Approval Is Probable
Most loans come attached with strict conditions. They typically mandate excessive documentation and the contracts are often complicated. Unless you have a lawyer perform a review, you run the risk of not properly understanding what you are signing. Merchant cash advances are different. Since they do not measure vulnerable metrics, such as time in business or personal finance history, your request is more likely to be accepted.
Credit and Collateral Remain Safe
A merchant cash advance is classified as a sales transaction rather than a loan. This means that no collateral is necessary, so your assets will remain safe. Better still, these advances do not appear on credit reports, leaving your score untouched.
Commercial bank loans often take a long time to complete. By the time you receive the money you need, several payment due dates may have already passed. The money provided by merchant cash advances, though, is typically available within the same week the application is received and arrives in one, ready-to-disburse lump sum.
Because what you owe each reimbursement period is based upon sales rather than a fixed dollar amount, you will always have the means to pay. For businesses where revenue varies greatly from week to week, this is ideal. The built-in flexibility of percentage-based collections assures that companies can continue growing even when they are still in their infancy.
For entrepreneurs unable to access conventional financing, a merchant cash advance can be an excellent option. If you need funds to keep running and your choices are limited, keep in mind the distinct advantages this form of monetary support offers.