A merchant cash advance can be a tremendous option for the business that needs money in a short amount of time. The merchant cash advance can provide an alternative to the conventional bank loan. It offers businesses working capital based on future credit card sales.
This can be the perfect option for high-risk businesses with bad credit.
This can also mean monthly payments may be lower when business is slower. It’s all about versatility. In essence, the business pays when the customer pays.
The process is quick and relatively simple. You sell the merchant cash advance provider a fixed amount of your future credit card sales at a discount. In exchange, your business receives a lump sum of working capital. This is one of the main differences between a merchant cash advance and a conventional business loan.
The credit card processor sets up an automatic process where the cash advance provider is sent a fixed, pre-determined percentage from each credit card sale when it is settled. Another advantage to this process is the fact that multiple rate options are available.
Talk with a merchant cash advance provider today to find out if this option makes good business sense for your business.