3 Reasons You Should Consider Getting a Merchant Cash Advance
If you’re the owner of a small business, you understand just how important maintaining consistent cash flow is for your company. After all, working capital is key to covering your regular expenses, expanding your business, and keeping your day-to-day operations running smoothly. However, if you find yourself in a cash crunch, you’re not alone. In fact, some studies have shown that most small businesses only have enough cash on hand for about a month’s worth of typical expenses. If your cash reserves are running low and you need some capital to tide your company over, you may want to consider a merchant cash advance. Take a look at some of the advantages this unique loan option has that could benefit your business.
1. It Has a Quick Turnaround Time
Applying for traditional bank loans often requires paperwork, documentation, and credit checks. The complex application process means it could take months before you get approved, during which time your business is left unsupported financially. With merchant cash advances, however, you can get good-sized loans, sometimes of up to $200,000, within short time periods of often only 24 hours. At the same time, because you get the money quickly, the loan term will typically be shorter than for bank loans, usually ranging from one to three years.
2. It Doesn’t Show on Your Credit Report
If you’re concerned about taking out loans because you don’t want to negatively impact your credit, you should know that these cash advances are technically considered transactions, not conventional loans. This means that it won’t show up on your credit report, so you can rest easy about your score.
3. It Can Help You Access New Opportunities
If you’ve been presented with an exciting opportunity but need to act on it quickly, you don’t have time to wait around for a bank loan. Instead, this form of financing provides you with quick funds to act right away. Since you’re essentially leveraging future earnings, you can repay the advance via credit card deposit withholdings later on.
When you own a business and pour all of your time, energy, and passion into it, a cash crunch can be disheartening, even though it’s a common situation for business owners. Thankfully, when you need extra capital to maintain your operations, a merchant cash advance can provide the solution you’re looking for. The next time your cash flow is running thin, consider this funding option. It could just be the perfect choice for your business.
