The Top Benefits of a Merchant Cash Advance
Owning a small business is a huge challenge. To survive, you must have the necessary capital. While you can easily find several capital options, not everyone will be eligible for or able to qualify for a traditional loan.
It is not unusual to find that many small- and medium-sized businesses struggle to find lenders who are willing to provide them with the funds they need. This is where a merchant cash advance can be the solution you are searching for.
No Risking Your Credit Rating or Assets
When you take out a merchant cash advance, you don’t risk your business’s financial health. You don’t have to have a high credit rating, significant collateral, or a significant business history for approval. Payments come out of your credit card sales, which means there’s no monthly payment to keep up with.
With a merchant cash advance, you aren’t putting your assets at risk, either. It is repaid based on your future revenues, which means you don’t have to prove your business’s worth. What you pay is dependent on your credit card sales.
No Restrictions on How the Money Is Used
A small business loan often carries restrictions regarding how the money can be used. For example, with the 504 loan program offered by the SBA, you can’t use the funds for purchasing inventory. If you get an SBA Microloan, you can’t use the funds for purchasing real estate or repaying debt. If you have spending restrictions on the money, it may not be easy to handle the current needs of your business.
One of the main reasons merchant cash advances are so popular is that you can get a lump sum and spend it how you see fit. This flexibility is beneficial to most businesses, especially if you plan to use the funds for various business-related needs.
No Set Payment Amount
When you get a merchant cash advance, it’s not the same thing as a loan. You won’t owe payments, and there is no set repayment term. Instead, you receive a lump sum of money in exchange for a portion of your future credit card transactions. This means that you don’t borrow money; you are just selling some of your future profits.
If you need funding for your small- or medium business, considering a merchant cash advance is a good idea. These offer various benefits that can help you get the funding needed for ongoing growth and success.
