Merchant Cash Advance; The Life Saver for Merchants
Posted: Nov 03, 2016
Most of the small business owners need access to large amount of capital in order to achieve growth and success. They lack the finance because it is small in size. Such businesses can get hold of large amount of cash through merchant cash advance also known as business cash advance. In its process, a trader provides the businesses upfront cash or capital in exchange for a percentage of future credit card sales. It is one of the most common alternate sources of funding for entrepreneurs.
Why Small Businesses take Merchant Cash Advance?
Most of the small businesses are in need of merchant cash advances for covering their operational expenses. They take it for:
- Making Payroll
- Growing Inventory
- Purchasing New Equipment/Packaging/Supplies
- Marketing Or Advertising Dollars
- Expansion/Renovation Of Business
- Tent Payments
If you have had strong sales, but struggle with little or bad credit, a merchant cash advance may be a particularly good option for your small or online business. Getting the capital you need when you need it can mean the difference between the success and failure of your business.
Who Qualifies for it?
Businesses who have a clean slate usually qualify for this advance money. A business does not qualify if:
- A business who has a prior bankruptcy on file
- If a business has been in existence for less than one year
- If a business do not already have the ability to process credit card payments for its customers
Acts As A Fast Cash SourceMerchant cash advance does not take as long to process as traditional bank loans. In fact, some cash or capital can be delivered to the business within hours of submitting an online application. This is good news for business owners who simply don’t have the time to wait for long processing that is typical of many banks and larger lenders.
No Need of Too Much Paperwork
It can easily be accessed online. There is no requirement of filling out lengthy paperwork. This decreases your wait time and increases your turnaround time.
A Flexible Repayment Schedule
Business prefers it because the repayment is easier over time. This may work in the business’ favor, particularly if sales are slow at first, because payments are based on a percentage of sales, rather than a fixed monthly amount.
Greater Chances of Request Approval
This is good news for struggling small business owners who may have been turned down for traditional loans by banks and other lenders. High approval rates from companies offering merchant cash advances means higher chances of securing the capital you need.
Hence if a business carries out a proper research online, they will find many options in merchant cash advance category. They don’t need to shut down because they are out of cash, they can always take a chance.
Jeff Marlon is a Digital Marketing Analyst in Techzo Store, a leading digital products store that offers web design, development, mobile app development and digital marketing solutions.