Tantalizing Benefits of Merchant Cash Advances

Tantalizing Benefits of Merchant Cash Advances

Every startup needs money to thrive. For many, a merchant cash advance helps assure they never run dry. Consider the many advantages of these loans and how they can benefit your operation.

Speedy Payment

Traditional loans typically take a long time to process. If you need capital in short order, this type of funding option is highly preferable. In all likelihood, you won’t have to wait longer than a week before the cash is deposited into your account. The money will arrive in one lump sum, ready for you to access the moment it’s needed.

Better Approval Odds

If you do not have a high credit score, there’s a good chance a bank will reject your loan request. The odds of being turned down are lower with merchant cash advances. Also, their applications are easily completed online and require minimal effort. Your credit score is irrelevant. What matters is that you have enough credit card activity to be worth their investment.

No Risks

Many loans require collateral. Additionally, they usually mandate that you pay back a specific portion of the loan every month. If you are unable to remit this amount, you could wind up facing severe financial repercussions. Legal trouble may even come down on your shoulders. With merchant cash advances, you face no such worries. Your credit score will never be at risk, as these deals are based on future profits. Further, hard assets are never leveraged in exchange for capital.

As if this weren’t enough, you are also protected by their inherent payment structure. Since bills are determined by how much business you do, you’ll owe less in months that have fewer customers. You should always have enough money on hand to pay back your lender.

Freedom of Use

It is common for different types of loans to have strict rules. Often, they stipulate how borrowers may use them. You don’t have to worry about this possibility with cash advances. Use the cash however you see fit, whether that means fulfilling payroll, replacing necessary equipment, or starting a promotional campaign. Splitting money between multiple objectives is entirely acceptable. Instead of committing to a particular business decision now, wait and decide how you want to use these dollars after they’ve arrived.

A merchant cash advance can be a perfect arrangement for any ambitious business owner. Consider one of these lending agreements before approaching a bank about a more conventional agreement.