Business cash advance is a loan program to finance the small and the mid sized business. We are living in the world, where economy is constantly thriving. The survival for the small business is getting difficult in this economy. Some small businesses do not even get successful. They go into loss at the very initial level due to no or meagre financial support.
To save these small and mid sized companies, many merchant companies have introduced business cash advance which is a loan for small businesses.
Qualification for a Merchant Cash Advance
Any company that accepts credit/debit card can easily qualify for Business Cash Advance. The company must have a good credit card score. It should be in business with at least 650 of credit score. the merchants who are still current with their rent can qualify for this loan.
Benefits of Merchant Cash Advance
1. It is easy to apply and has high approval rate.
2. No collaterals are required.
3. you can get cash easily in 2 to 3 days
4. No closing or upfront fee is required.
5. No monthly instalments are to be paid.
Business Cash Advance Vs. Bank Loans
They are unlike business loans from banks where you have to pay the money within limited time. Business Cash Advance also known as Merchant Cash Advance provider only takes a percentage of your credit card sales, which ranges from 12 to 20 percent. This process is continued until the loan is repaid. Unlike banks where you have to repay full and fixed instalments.
How much money can be taken?
A small business can get up to $50,000 to $250,000 of cash advance. If a company has an average credit card deposit of $200,000, then you can easily qualify for $200,000 of loan.
Therefore, Business Cash Advance is the best way of financing your business. It can help you to save your business and can help expanding it.