What is a Merchant Cash Advance and How Does It Work?

Whether you’re trying to get your small business off the ground or whether your business is going through some tough times, you may need some financial assistance. There are many options to choose from, so it can be difficult knowing which is right for your company. A merchant cash advance could be a viable way for you to obtain some quick cash to help with a number of business functions. You may need a new facility, updated equipment or supplies, or funds to hire. This funding option provides several advantages to other alternatives.

The Nuts and Bolts

A merchant cash advance works differently than other financial assistance you may be accustomed to. The way it works is simple. You obtain a lump sum payment of a specific amount. Then, you repay the advance through a percentage of your daily credit card receipts. The entity that advances you the cash will also charge a fee.

Fast Process

One of the drawbacks of some traditional loans is that it can take weeks to assemble all the necessary paperwork and documentation, submit the materials and wait for approvals. This can be frustrating, especially if you’re in a financial bind. You’ll love the cash advance option because the application and the approval process are quick and painless. In fact, you may have cash in your account in as little as two days.

High Credit Score not Necessary

Some business owners can’t qualify for loans or other financial assistance. You’ll appreciate the fact a merchant cash advance is ideal for businesses that have lower credit scores. In fact, even if your score is in the 500 range, you can still be a candidate for this advance.

Wide Range of Funding

Every business is different, so your organization needs won’t be the same as another. You’ll be happy to know that you can get as much as $250,000 in funding through this method. On the other end of the spectrum, if you only need a couple of thousand dollars, you can apply for that smaller amount as well.

Many Uses

For the most part, this cash advance won’t restrict how you use the funding. You can use the money for just about anything your business needs, whether it’s something immediate or whether it’s for a more long-term use. Whatever you feel will help move your business forward, this financial boost can help.

If you’re not sure what type of financial assistance you need, consider a merchant cash advance. You’ll like the advantages of this option.


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