A merchant cash advance is a form of financing that is made for business owners who need quick finance. Unlike another form of financing like bank financing, you do not need to have collateral or a good credit score to qualify for the loan. By taking a merchant cash advance, the money will be paid from future credit card sales of the business. The method of repayment of the cash in advance is from the sales made by the company through the credit card. You don’t have to worry about this because only an agreed amount is deducted and not the full amount.
Why take the merchant cash advance?
No need for collateral
You will be surprised how many businesses fail to access loans due to a poor credit score or lack of collateral. Collateral can be a big problem especially if you are just starting out in business. The best thing with merchant cash advance is the fact that you don’t need all these to access business financing. You can get the money that you want to finance your business without going through the stress involved with other financing institutions.
When looking for financing as a business owner, the long process involved can be frustrating. You need an easy process that will help you get money without a lot of paperwork and processes. The first step is getting submitting the application together with some few business transactions. After the assessment, you will be approved for the cash advance. The process of collection is also easy when repaying the cash advance.
There are instances when you need to get money as quick as possible. At this time, it is impossible to get money from commercial banks or the traditional financial institution. You need to look for a financier that will give you money in the shortest time possible. Merchant cash advance will give you money in the shortest time possible because there is less paperwork involved in the process.
With a merchant cash advance, you can be guaranteed of easy repayment. The money is deducted from the credit card sales, and this means that every time you make sales, the money is deducted. When you make low sales, then you don’t have to pay a lot of the cash in advance.