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How A Merchant Cash Advance Can Save Your Business

Dec 19

As a small business owner, you have a lot to think about to keep your business running. It doesn’t matter if it’s an older family owned business or your business is fairly new on the block.

COVID gave us some real challenges and the fight is not really over yet. Trying to get your customers may be one of the challenges right now, but the biggest problem is cash flow, and you are not sure where to get the extra money. 

Most businesses have never really been in this situation of needing more cash, you need it right now and the traditional supports are no longer there, or it’s going to months and months to get an approval. 

Merchant cash advances are ideal when you need funds fast and don't want to go through the hurdles of applying for a business loan. Merchant Cash Advances are ideal when you need funds fast and don't want to go through the hurdles of applying for a business loan. 

Merchant cash advances can also help keep your cash flow steady since your payments adjust according to how well your business is performing. 

Businesses need an easy, quick way to get capital that doesn't require months and months of steady profit so they can pounce on new opportunities that will increase growth in the long run. Merchant cash advances (MCAs) are a funding solution that can fit these needs only a few months of profits are necessary, some have one quick online application, and you can receive money as soon as the same or next day.

What are the advantages of cash in advance?

This was the genesis of merchant cash advances (MCAs), a form of small business financing that enables companies to put their future credit card receipts to use today. In these cases, the company runs into financial problems a few months after getting the initial cash advance. 

You get an immediate response and immediate cash (or money deposited into your account as the case may be). They can be a useful solution if your company has to capitalise on an opportunity very quickly, or if it has an urgent need for cash.

Exporters who insist on cash-in-advance as their sole payment method for doing business may lose out to competitors who are willing to offer more attractive payment terms.

How do cash advance companies make money?

Although this product is often referred to as a business cash advance loan, providers often state that the product itself is not a loan. The biggest difference between a merchant cash advance and a small business loan lies in their repayment terms. 

Cash advances are extremely expensive and potentially dangerous entryways into a vicious cycle of high-interest debt. The Merchant cash advance company takes their cut from each day's proceeds until you've paid them back, including the principal you borrowed and whatever fees they may have charged for the privilege.

The choice is yours, you risk the possibility of your business eventually going bankrupt or getting a cash infusion that will help you.

As a business person, you know there are risks that are not worth taking and there are some worth taking if it means survival. You managed to keep your business for so long that you have to trust your own judgements. 

If it means losing a customer, that is the world to you, but if means gaining more customers by upgrading your business right now, that is what you have to do, you are in the business of making money and profits from what you sell! 

Unlike with traditional loan products, payments toward a merchant cash advance do not build your credit history.

A Cash Advance for your business means improving your day to day struggles and wondering where you can get this extra money, even though the brokers and promoters are getting a cut of this, it means more to you to make a profit your own business than worry how other people make money. 

More information on a Merchant Cash Advance, click the colored link in this article. Fill in some basic information and our staff will contact you right away. We walk you through the process, let you know what information we need and shop around for you. 

The bottom line is; it’s still your decision at the end of the day, we help you, but we will not pressure you. 

Thank-you

GMonague