Statistics show that the failures of a vast majority of small businesses are related to cash flow problems. A possible solution to cash flow difficulties is a merchant cash advance. Here is what you need to know if you are considering this method of financing.
Merchant Cash Advance Basics
A merchant cash advance allows you to obtain a one-time single amount of funding that you pay back through a percentage of your company’s upcoming credit card sales. To qualify, your business must have a substantial amount of credit card sales. The amount you can receive depends upon the volume of your transactions via credit card. Usually, the payments are deducted automatically from your account. Since they are comprised of a percentage of the sales your company makes each day, you will pay less when sales are down and more when you have increased sales.
The Advantages of a Merchant Cash Advance
As long as your customers typically pay with credit cards, you can qualify easily for a merchant cash advance from an alternative lender. Even if your company’s credit history is questionable. There is minimal paperwork, and application and approval procedures are swift so that you could have the funding your business requires in a matter of days. No collateral is required. You can use the cash from a merchant cash advance for any needs that your company has.
The Right Time to Obtain a Merchant Cash Advance
A merchant cash advance is a good solution for a company that requires fast and reliable funding. It could be for a business that obtains short-term expenses that must be met immediately or a seasonal business during a slack period. If you cannot qualify for a traditional business loan or don’t have time for the lengthy application process, consider the alternative of a merchant cash advance.
For more advice on funding your business with a merchant cash advance, contact Critical Capital Solutions.