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Is a Merchant Cash Advance Right for Your Business?

James Smith

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Merchant Cash Advance

Does your stomach drop at the thought of having to take out a bank loan for your business?

Loans don’t have to be intimidating and time-consuming and a merchant cash advance is proof! Things happen and when you need money fast, you have options you can count on and feel confident about.

If you’re considering using business loans, continue reading to learn more about what a merchant cash advance is and how it can help you and your business!

What is a Merchant Cash Advance?

Thought of as a non-loan type of loan, a merchant cash advance is a less-ridged cash loan that allows borrows to cater certain aspects of the process and payback to fit their needs.

The reason for these differences is because it’s not thought of as borrowing money, but instead, the borrower agrees to owe a portion of future profits to whom they are receiving the loan.

Benefits of a Merchant Cash Advance

The reason that merchant cash advances are thought of so highly is because the business owner receives the money they need, but not at the expense of a financial institution gaining leverage and control.

There are a number of appealing structural benefits when choosing a merchant cash advance over a business loan.

Easy Apply, Fast Money

For standard business loans, you have to go through the process of sitting down with a banker, discussing how you are going to use the money, and waiting for approval.

In most cases, you can apply for a merchant cash advance online. Upon approval, you will receive cash loans of this type much faster.

Less Credit Factor

Traditional loans are typically difficult to obtain for applicants with poor credit scores. While not guaranteed, there is a significantly higher approval rate with cash advance loans.

Read Also: Do You Need A Business Loan Broker in Singapore?

Payment Options

With your standard loan, a rigid payment plan is put into place once the application is approved. When you utilize a merchant cash advance, you chose the payment option that fits your needs.

Because the borrower is not borrowing money, but agreeing to return money from future profits, payments fluctuate with business. So when sales are high you pay more, when sales are down, you have the option to pay less.

Before making an application, use an MCA calculator to determine exactly what this type of loan will mean for you.

No Pre-Determined Usage 

As previously mentioned, with a cash advance you can use your money when you need it, where you need it.

Loans for Your Business, Your Way

When you own a business, it is your heart and soul, making it hard to relinquish control financially, leading to even more uncertainty.

Merchant cash advances are one of the only sources to get the money you need without giving away a portion of control over to an outside source.

Traditional loans have their place too, but is a merchant cash advance right for you?

For more helpful information on all things business, finance, and more, check out the rest of our blog features!

James Smith is the writer for Munchkin Press. He is a young American writer from California and is currently traveling around the world. He has a passion for helping people and motivates others.

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