When business owners require additional financing, the first option many of them consider is a traditional term loan. However, there are several alternative forms of funding that may meet the needs of the situation even better. One of these, a merchant cash advance, involves exchanging a percentage of upcoming credit card sales for a lump sum from a lender. Here are some of the advantages of this method of funding.
The application process for a traditional bank loan can stretch out for weeks or even months. In contrast, applying for a merchant cash advance is easy. You fill out an online form and provide appropriate documentation. Most lenders respond to your request within a day or two. Obtaining the funding you need takes very little time away from the operation of your business.
Obtain Funds Quickly
Once your application has been approved, you can have the capital your company needs within a week. This allows you to quickly strengthen your cash flow and take care of immediate needs. For instance, you may need to pay off debt, purchase equipment, upgrade the workplace, or invest in additional marketing.
Running a business is exhilarating, but it can also be extremely stressful, and one of the main sources of stress is insufficient funds to pay bills and grow the company. A merchant cash advance gives you the capital you need to pursue your vision for your business without the crushing burden of inadequate finances.
Don’t Worry About Your Credit
Your company’s credit score will not be negatively impacted by this method of funding because a merchant cash advance is not a loan. Instead, the finance provider is purchasing a percentage of upcoming credit card sales. Additionally, the provider is more concerned about the volume of your credit card sales than about your credit, so you may be able to get a merchant cash advance even if you have not yet been able to build up a high credit score.
For more advice on obtaining a merchant cash advance, contact Kasher Capital.