Why Merchant Cash Advances is the Best Source of Funding for Small Businesses
Just like individuals, businesses also need finances. As a matter of fact, businesses need funding more than individuals. Every new business requires some funding to flourish. Additionally, there are times an existing business meets financial bottleneck and may need extra financing. There are several ways to obtain the business funding you need for your small or medium business. One of the most common ways to source funding for small businesses today is a merchant cash advance. When a small business needs finances quickly, a merchant cash advance provides unlimited flexibility. The following are reasons why most business owners consider merchant cash advances to be an excellent way to procure funding for a small business as compared to small business loans.
Also known as business cash advances, merchant cash advances are an extremely useful alternative to the conventional small-business loans. A merchant cash advance is a unique product that opens doors to the financial world for many retailers. It is pretty simple and quite easy to obtain for those in need. The merchant funding industry is committed to making the process simple, and there are many companies today offering cash advance online. Organizations that accept debit or credit card payments and generate a certain amount of revenue each month are likely to qualify for this type of funding.
Getting a small business loan can be a challenge when you have bad credit or no collateral. Unlike traditional business loans, merchant cash advances offer business funding with no strict qualifications, monthly bills, collateral, start-up fees, or personal liability. Because merchant cash advances are unsecured business loans and do not require collateral, you will not lose any asset if your sales plunge and fail to repay. Also, they are cash flow friendly and offer a flexible repayment schedule. The repayment plan is based on a fixed percentage of your sales and as such, repayments adjust depending on the performance of the business. That means that when the sales are down, you repay less, and this gives you more flexibility to manage any slowdown in the business and thus, the risk of default if minimal. Additionally, this method of business funding does not attract late fees.
While traditional small business loans are only used for approved business purposes, merchant cash advances can be used for a wide range of business purposes. Minimal financial documentation is required to determine your eligibility for a business cash advance as compared to a traditional small business loan.
Whether you need equipment financing, have come across a golden opportunity and need quick cash, or the bank has denied you money to finance your new venture; a merchant cash advance is a viable solution to your business' financial needs. Take a look at this link https://en.wikipedia.org/wiki/Business_loan for more information.