How Can a Merchant Cash Advance be Beneficial for Your Business?

1. When we think of any kind of business, the first thing that comes to our mind is cash. Cash is essential for any business and this is particularly true for small and mid-sized businesses. But why? Well, because cash is indispensable to pay suppliers, maintain inventory and to expand a business. At some point of time in the course of your business, you might need to borrow capital but it’s not necessary that you get cash within time. But luckily, merchant account business loans are there and they don’t keep you waiting. It helps you get that extra cash you need and that too much quicker than other lenders because they do not provide loan, but cash in advance in exchange for a part of your future sales.

2. A merchant cash advance for business can be defined as a lump-sum payment made to a business in exchange for some percentage of future credit or debit card sales of the business. Technically speaking it is not actually a loan, it is basically funding based on the credibility of your business. However, when applying for a merchant cash advance, the merchant cash advance company calculates the credit risk and will look at your daily/monthly credit card receipts to evaluate the probability that your business can repay t e funds within the required time frame. If you have started a new business or you lack in credit score or collateral to qualify for a traditional loan from a bank, small business cash advance could prove to be the best option for you and your business. Since it is not considered as a loan, it will not reflect as a debt on your credit report. Another significant

3. advantage of merchant cash advance is its flexibility; both payments and term duration are both negotiable. The best part is that your credit history is not important to a merchant cash advance funding company. However, some of the other benefits include: No collateral No interest No set-up fees Easy application process Quick approval Enhanced cash flow Owning a business is very gratifying, but it comes with responsibilities, too. And this can be quite stressful, especially if you are facing cash crunch. In such situations, merchant cash advances can help you get out of financial crisis affecting your business.