When you need money to fuel your business, you may have better options than a bank loan—such as a merchant cash advance. An advance provides you with a lump sum, in exchange for a portion of your company’s upcoming credit card sales, plus fees. These advances must generally be repaid within 6 months or a year.
Merchant cash advance benefits include:
- Simple to apply: Online applications are common and uncomplicated. You’ll need to supply your Tax ID, copies of recent credit card processor statements, and a few other pieces of information.
- Quick access to funds: Lenders may respond to your application within 48 hours. You may receive funds within a week of approval.
- No credit score consequences: You can get a merchant cash advance with a poor credit history and generally without lowering your credit score. The cash advance company may check your credit, but this is usually not a “hard” query that stays on your credit record. Ask the financing company what type of credit pull they do, to be sure.
- No collateral needed: The financing company gets a portion of your future credit card sales, so no real collateral is required.
- Automatic payments: Repayments are auto-debited from your business checking account. The payment amount is typically a percentage of your daily or weekly credit card sales.
- Relieves pressure: Merchant cash advances can make your business operations easier and potentially less stressful. The advance helps you to avoid a cash flow shortage that might otherwise limit your business options.
Merchant cash advances can provide you short-term business funding, without the tough qualification process and time delay of a standard bank loan. The advance can be a great tool to help you operate when cash flow is tight and/or let you take advantage of a new opportunity to build your business.
Interested in a merchant cash advance to further your business goals? Contact the experts at Simplicity Capital Finance today.
