Try a Merchant Cash Advance if Your Company Needs Money Quickly
Sometimes something unexpected happens and you find your company needs money fast. Unfortunately, traditional bank loans can take weeks or longer to be approved and that’s after you spend hours doing tons of paperwork. When you need money as soon as possible, consider a merchant cash advance instead.
What Is a Cash Advance?
Unlike traditional loans, which are based on your company’s current assets, a merchant cash advance is an advance based on your company’s credit card sales. Instead of paying back a fixed amount each month, you repay the loan with a percentage of each credit card transaction. For example, if you agree to pay back 10 percent per transaction, a $1,000 transaction would send $100 to your lender. Interest rates are higher on advances but they are an excellent option for companies that don’t have other means of gaining capital on short notice.
Benefits of a Cash Advance
Cash advances offer several benefits. They typically require little paperwork, no collateral and do not have application fees or closing costs. Once you are approved, you often receive your funds in a matter of days. You can use the money for whatever your business needs, including:
- Advertising
- Inventory
- Equipment
- Expansion
- And much more