3 Reasons To Offer a Merchant Cash Advance in Your Business

Software providers have numerous clients, especially when offering total system packages that take care of everything from inventory management to webpage design. These businesses may provide e-commerce solutions for customers, including branded credit cards and merchant cash advances. In reality, every business can benefit from a merchant cash advance.

What Is a Merchant Cash Advance?

An advance is when you receive money ahead of time for a bill or asset. Factoring is one type of advance, where you get capital instantly in exchange for selling unpaid invoices to the lender. With a merchant cash advance, the lender gives you a loan based on the amount of your total credit card receipts. Every week or month, the financial institution gets a percentage of these sales.

Merchant advances are a type of alternative financing that provides fast loan approval in exchange for comparatively higher interest rates. This is a totally legitimate financing solution for everything from inventory purchases to emergency business needs.

3 Advantages of Merchant Cash Advances

Great entrepreneurs know that there’s more than one way to finance a business. Long-term loans offer incredible interest rates, but they take a long time for approval. On the other hand, merchant cash advances usually have higher rates, but they offer benefits you can’t ignore:

Fast Approval and Amazing Flexibility

It can take several weeks or more before you’re approved for a traditional loan. With a cash advance, you can get needed capital within 24–48 hours. That’s right — you can walk out of the bank the same day with the money you need for a purchase. This lets you pounce on incredible deals when buying business equipment or inventory.

Significant Funds for Business Expansion

It takes money to grow a business. Capitalizing on opportunities means adapting to the local market and your specific industry. Some businesses experience strong seasonal growth, meaning they need to hire additional personnel throughout the year. Cash advances ensure paydays are always covered.

Trustworthy Capital To Handle Emergencies

If something unexpected appears, it doesn’t have to get in the way of success. Dealing with temporary setbacks is easy with the funds from merchant cash advances. You can pay rent, electricity, bills, and taxes on time, keeping your customers and suppliers happy.

Getting a Merchant Cash Advance Is Easy

One of the biggest advantages of merchant advances is that approval doesn’t depend on your credit rating. As long as your credit card receipts show solid revenue, you can obtain this type of financing easily. The process doesn’t take long, and high-quality lenders can help you choose the best option for your business.

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