Five Benefits of Merchant Cash Advances for Small Businesses
As a small business owner, you’ll know there are a lot of expenses tied up with starting a business. And even as the business becomes established, there are always unexpected expenses that arise. It can be tough to make it work, but there are financing options out there to help, including loans, trade credit, leases, lines of credit, credit cards, and bonds.
Merchant cash advances are a popular option for many small business owners. A merchant credit card cash advance is not a loan, but the purchase of future credit card receivables. This means that you will receive a sum of money from the merchant cash advance companies, which will be repaid over time with a percentage of your credit card totals.
Benefits of Merchant Cash Advances
- No Waiting Around – Bank loans can take months, but you can get your payment for merchant cash advances within 48 hours.
- No Cost to Apply – While other financing options may charge you a fee just to apply, you don’t have to worry about that for cash advances.
- No Collateral Required – You don’t need to worry about the equity on your home for collateral purposes, because none of that is required.
- No Set Time for Payback – Whereas loans often have a set time in which they need to be repaid, no such rule stands for cash advances. They are repaid when the percentage of credit and debit card sales finally matches the amount initially paid.
- No Limits – Your cash advance is an ongoing source of capital, as it can be renewed as the advance is paid down.
Small businesses have found that getting cash advances on credit cards has allowed them all sorts of opportunities that they might not have been able to take advantage of otherwise. Small business working capital is what allows any business to grow and change.