Even though your business may be making money, it can be hard to have enough money for all of your needs. There are big purchases that may need to be made that exceed what your budget or bank account allows. Merchant cash advances are a form of financing that provides small business owners cash when it’s needed with a straightforward repayment option. However, this form of financing requires some consideration.

Speedy Loan Approval

A merchant cash advance (MCA) provides fast, efficient, and flexible funding that is not dependent on credit score or collateral. An MCA offers discretionary capital that can be used for anything your business needs, such as equipment, office supplies, paying down existing financial obligations, marketing, or anything else.

A merchant cash advance doesn`t require the same paperwork as a traditional lender, speeding up how quickly an application can be filed and approved. Additionally, there are no fixed payments, which offers businesses more flexibility compared to traditional loans.

More Likely Approval

Traditional lenders put significant weight on your personal or business credit history when evaluating potential approval. If your financial history has led you to a low credit score, you are more likely to be denied a conventional small business loan. By contrast, a merchant cash advance is structured around sales history. MCA lenders take their payment for the loan straight out of a small percentage of the total credit card transactions, so a business with a majority of accepted payments coming from credit card transactions is a favorable candidate for approval.

The more lenient approval requirements make an MCA a reliable solution for businesses that haven`t yet established a strong credit history or whose reports are less than stellar. Businesses that bring in at least $2,500 a month are good candidates for an MCA.

A merchant cash advance is a great fit for businesses that do not want to take on additional debt, and they offer the flexibility and versatility entrepreneurs demand.