Choosing a merchant cash advance may be the best option available to help finance your business. If you have a hard time creating a business line of credit or gaining approval for a business loan, a cash advance makes perfect sense. The following are the top four reasons why you should consider a merchant cash advance for you business.
1. The simple application/approval process frees up your time.
The waiting process for receiving a business loan or line of credit can be tremendously long. In some cases, business owners have to wait up to 30 days to receive notice of approval. In addition, the back and forth calls to the bank about the application waste plenty of time, which could be suited for something more productive. Choosing a merchant cash advance will avoid these arduous process altogether. You can quickly and conveniently qualify by phone or online.
2. Even with fair or bad credit, your business can still be approved.
When applying for a merchant account or loan, banks have a lot of stipulations for businesses that want to borrow money or create a line of credit. Many businesses have to worry about being approved by the bank because of their less than stellar credit score. However, good credit is not a major factor in the approval process for a cash advance. Businesses are much more likely to receive adequate business funding from a merchant cash advance.
3. Cash advances offer flexible repayment terms.
Traditional business loans require flat-rate monthly payments, which can lead some businesses into a financial hardship. Merchant cash advances offer a different way of repaying that is more flexible and business-friendly right through credit card processing. Payments are always based upon the business’ sales volume. In other words, if you have a slower month than usual, you will be allowed to pay less that month towards the cash advance.
4. There are no restrictions on what the funding can be used for.
Business owners can find themselves trapped into their business loan, with the bank dictated how they spend the money. But, a cash advance is specifically designed to help improve cash flow. The new funds can be used wherever your business needs them most, without any limitations.
A merchant cash advance should be considered for all small businesses, whether they are just starting out or firmly established. They offer the ability to have cash in hand in as little as 72 hours after approval of the application. Now that is a simple and efficient process!