If you operate a seasonal or customer-facing business, you know how easy it is to fall into a cash flow shortage. You probably also know how difficult it can be to qualify for a business loan from a bank, especially if your company is new. While that can be frustrating, the good news is that you have other options. A merchant cash advance is just one of them. You receive money in one lump sum and pay back a percentage plus interest from your daily cash register receipts.

Advantages of a Merchant Cash Advance Over Other Types of Business Financing

Even when you meet the strict criteria of a bank loan, it can take several weeks to months to secure your funds. With a merchant cash advance, on the other hand, you can have your funds in as little as 24 hours. That can come in handy when you have an urgent need such as repairing or replacing a major piece of equipment.

The application for a merchant cash advance is also much shorter than that of a bank loan, which means the process goes much faster. The main criteria is that your business brings in enough credit card sales each month for the arrangement to work. It depends much more on this than it does your past credit history, both personal and business.

Qualifications for a Merchant Cash Advance

You should plan to collect bank statements from the last four to six months before submitting your application for a merchant cash advance. While qualifications vary by lender, other common ones include business tax returns, profit, and loss statements, and accounts receivable statements. Unlike many types of business loans, you may not need to include a personal guarantee when you apply for and receive this alternate type of business financing.

Are you ready to learn if this is the right financing option for your company? Contact Simplicity Capital Finance today.