How a Merchant Cash Advance Can Help You Start a Business
The average cost to open a small business is about $40,000. If you don’t have that kind of money sitting in your pocket, you’ll need to start exploring financing options.
While a traditional bank loan will help you pay for your equipment and utilities, qualifying for one can prove difficult. It will also force you to start your company while in debt.
If that’s something you would rather avoid, consider applying for a merchant cash advance instead. You’ll still have to pay back what you borrowed, but you’ll be able to adjust your payments based on your current cash flow. Check out this guide to learn more.
What Is a Merchant Cash Advance?
There are a lot of costs involved with opening a startup. A merchant cash advance will give you the money you need to pay for everything via a single lump sum.
That being said, a merchant cash advance is not a loan. It’s an investment for the provider. They’re essentially purchasing any future sales you make.
In most cases, they’ll take a percentage of all your debit and credit card sales. Some merchants take the money you owe when it drops into your business bank account.
Fast Application Process
A cash advance can help grow your business in a variety of ways. The first is that the application process is fast.
There’s a minimal amount of paperwork that you have to fill out. Once you finish it and turn it in, you should receive your cash in a few days if you’re approved.
No Risk
When you go to the bank for a small business loan, they may give it to you, but you may have to put something up for collateral. This makes these types of funding options risky.
If you have a tough month, you may not be able to pay your loan. Depending on what you put up for collateral, this could set your business back big time.
That’s the beauty of merchant cash advances. The only thing you’ll ever be required to give up is a small percentage of your card sales.
Since most providers base your payments around your current cash flow, you’ll never have to pay more than you’re capable of doing so. As you can see, there are almost no risks involved with a cash advance.
Use Your Cash Advance for Anything
Some bank lenders have limits on what you can spend your business loan on. Merchant cash advance providers don’t.
You’ll be able to use your business funding however you want without receiving an angry phone call.
Improve Your Company’s Cash Flow with a Merchant Cash Advance
One of the biggest hurdles you have to overcome when starting a business is funding it. If you don’t have the money you need sitting in your pocket, you’ll have to pursue a loan or apply for a merchant cash advance.
In most circumstances, a cash advance is the better option. There are almost no risks involved, you can use the money for whatever you need, and the application process is quick and painless. Get started today!
For more tips that will help you fund your new company, visit the Business section of our blog.