Why Go For Merchant Cash Advance

By Kathleen Carter

Do you need quick business financing but finding it hard to go through the usual channels just to get your business loan application approved? You should be aware by now that businesses are having a really hard time getting business financing just about anywhere, especially from banks. There is no need to worry, though, because you will be able to obtain the funds that you need through a merchant cash advance.


Your business can get fast and easy business financing when you go for merchant loans. What are they, though? What benefits do they offer that other types of loans don't?


Merchant cash advances have existed in the US market for quite some time now but are new to the UK market. A lot of entrepreneurs are taking advantage of them since they are able to give tons of benefits that normal loans do not offer. They are by far the most convenient method to get business financing fast. In fact, a merchant advance will normally get approved within 24 hours. Getting the funds after approval usually takes just 5 to 10 working days, tops. When you go for banks loans, the process of having it approved will take several weeks. The release of the funds will also take several more weeks, that is, if they get approved.


Merchant cash advances are different from traditional loans since they are based on the average daily volume of your business's credit card transactions made in a month. As a result, you are assured that your monthly repayments will be directly proportional to what you are going to earn. This allows you to run your business normally without any need to worry about its survival. Going for bank loans will not only subject you to an agonizingly long wait for your loan's approval, you will also be subjected to paying fixed monthly payments.


A lot of businesses, both small-scale and large-scale, benefit from merchant loans. They are the option most ideal for them since they offer great flexibility. If you get one, you can use the funds any way you want, unlike banks loans and other similar loans wherein the funds can only be used for a specific purpose as written on your loan application. They will also not affect your credit rating adversely.


The amount that you will be getting once you get your merchant cash advance approved will be based on your business's monthly credit card transactions done in the past 6 months. Normally, you will be granted about a hundred percent of your average monthly income from credit card sales alone. Expect to pay around ten percent of your totally monthly income for your repayment obligation. This makes merchant advances really cost-effective. What's more, as soon as you are able to pay about 50 percent of the total amount of advance that you initially got, you can already avail of another one without any need for re-application. All this makes merchant cash advances ideal and viable for most small businessmen.

If you want to grow your business rapidly, consider a merchant cash advance. You will find that you need not go through much red tape if you do. You will also be able to grow your business without a lot of hitches.

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