Increasing Cash Flow with Merchant Cash Advance
If you own a product-based service, you probably hold a lot of your money in the value of your inventory. This doesn’t help when you need cash fast to pay your vendors. What are your options for increasing your cash flow? One that could help your business is a merchant cash advance. This is a quick way to get cash in your accounts so you can take care of your financial obligations.
You Don’t Need Good Credit
When you go to the bank to apply for a traditional loan, you need to provide credit history and financial documents that prove you’ll be able to pay back the loan. This can take time and you may not end up getting approved for the loan. A quicker, more reliable way to get the money is through the merchant cash advance. In this application process, you tell the lender how much you need to borrow and show them how much money your business makes to determine your eligibility. Once you’re approved, you’ll get the money fast.
Fees are Deducted From Your Daily Credit and Debit Card Sales
Traditional loans charge interest and capital that you pay off monthly. You will need to add this to your budget and make sure you have that money each month. With a merchant credit advance, the lender deducts a fee from your daily credit and debit card sales until the loan is paid off. They will continue to take a cut of the payments until the full amount is paid off. Do your due diligence and make sure the fees are not more than you can afford to pay.
They Can Give You a Boost During the Slow Season
Seasonal businesses can suffer from a low cash flow during the slow season. Yet they still have expenses that need to be paid. Cash advances are a good solution because of the way it is repaid. It might be hard to budget a loan repayment when your sales are down, but with the merchant credit advance, you only pay when you make a sale.
All types of financing have pros and cons and you need to think carefully about what you are able to afford when it comes to fees and interests. Merchant cash advances do have fees associated with them, but if you just need a little cash to tide you over until your cash flow improves, they might be perfect for your business.