In today’s time if you are running a business or are thinking of setting up a new one, you will need cash. Out of the many forms of business financing, business cash advance is one which has proved to be the most beneficial for many small business owners.
A business cash advance also known as merchant cash advance provides an alternative source of funding to business people who cannot hold any collateral against the regular loan. When you receive a business cash advance your business agrees to sell a fixed dollar amount of its future credit and debit card sales at a discount. When this cash advance gets approved your will get a lump sum amount of cash for your business.
Some of the advantages of Business cash advance are as under
No Credit or Collateral at Stake
A business cash advance is a good option for acquiring and accessing cash safely, whereas, commercial loans can affect a business credit rating. A business cash advance is a sales transaction and therefore stays off the credit report.
Easy Application and Collections Process
The process of Business Cash Advance is straightforward with no hidden agenda and no hidden charges. If you go for a regular loan, the lender will evaluate financial statements, tax returns, and business plans, whereas business cash advance has only two simple criteria i.e. monthly credit card returns and length of time in business.
Quick Access to Cash
Merchant cash advance requires very little paper work, while commercial loans can take weeks or even months to process. Business cash advance funding can be available to you within a week of application submission.
High Approval Rate
One of the biggest advantages of merchant cash advance is that it has a high approval rate because it looks at the real business performance rather than credit to evaluate applicants. This approach allows any stable business to qualify for an advance.
Revenue based collections means that when you get the payment only then you get to pay us whereas the regular loan requires fixed amount of payment.
Many merchant companies offer business cash advance programs. The key to success is that research well and know which funding company to opt for.