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5 Ways A Small Business Can Benefit from A Merchant Cash Advance

In recent years, merchant cash advances have become an increasingly popular option for businesses owners. In fact, according to Forbes, the market for merchant cash advances is currently $500-$700 million, with the potential to reach $3-5 billion within the next several years. This increase in popularity is no coincidence; as other entrepreneurs before you have already discovered, there are numerous great benefits of a merchant cash advance for small businesses.

1. Flexible Repayments

Unlike with traditional bank loans, you will not be committed to fixed monthly repayments. Instead, your repayments are made in accordance with your monthly revenue: if one month you earn less than is typical, your repayment for that month will in turn be less. Furthermore, the loan is completely interest free. This makes financial planning simple, and repayments stress-free. Simply repay using a small pre-agreed percentage of your monthly card sales.

2. Quick Funding

The application process itself takes just a few minutes to fill out, and can also be completed entirely online, making it immensely convenient, especially for any bustling business owner who has no time for meetings at the bank and lengthy phone calls. Once your application has been accepted, funds can be in your bank account within as little as 24 hours.

3. High Approval Rates

The approval rates for merchant cash advances are much higher than that of traditional bank loans. In fact, more than half of businesses with less than 50 employees have been rejected for a bank loan. Rather than assessing your application on the basis of your credit score and personal financial history, you are instead assessed according to your business’ performance. Consequently, so long as your business generates a good amount of customer card sales, you are very likely to have your application accepted.

4. An Easy Way Out of a Sticky Situation

When you are running a small business, it is easy to make misjudgements and miscalculations from time to time, whether you are just starting out or have been in the trade for years. Or sometimes, things just go wrong, and it is beyond anyone’s control. However, this can of course leave you in a sticky situation, whether payments to staff or suppliers are due, or whether a key piece of machinery suddenly needs replacing. A merchant cash advance will provide you with the rapid funding you need to smoothly turn things around.

5. New Opportunities

An increase in cash flow will open up countless opportunities for growth and development. You can now afford to redecorate, to stock an exciting new product, or to invest in a new marketing campaign. The world is your oyster.

All in all, the benefits of a merchant cash advance for small businesses are plentiful. Increased cash flow is inevitably going to bring your company further financial security, and allow you many exciting opportunities to flourish. It is a quick, easy and stress-free way to aid you in reaching your business goals.



Author: Cormac Reynolds