A merchant cash advance is not a loan, but it can still be a big help to your business by putting immediate cash in your hands to help out with cash flow. In exchange for selling a portion of your credit card sales to an alternative lender, you will receive upfront cash to help manage your business. Here are some reasons why a merchant cash advance can be a great alternative for your business.

Simple Repayment Process

When it comes time to repay an alternative lender for your cash advance, it’s all based on your monthly revenues. If your credit card sales for this month were low, you will only be paying back a lower percentage of the advance, and if you had good sales this month, a higher percentage would be repaid to the lender.

Easy Application

Whereas a commercial loan might take weeks or months to get processed and to put money in your hands, a merchant cash advance can generally be completely wrapped up within a week. This can be crucial for your business if you’re experiencing cash flow issues.

Credit History Is Not an Issue

Your business credit doesn’t really come into play in a merchant cash advance. It’s much more important to an alternative lender whether the volume of your monthly credit card sales are high or low because that’s what repayment terms will be based on.

Approval Rates Are High

Given the fact that merchant cash advances are not based on the personal credit, on the amount of time you’ve been in business, or on your financial situation, approval rates tend to be high. The thing that matters most for getting approval for a merchant cash advance is that you have a high volume of credit card sales upon which repayments can be based. Most of those other traditional criteria don’t really matter to an alternative lender, so they won’t be reasons to disqualify you for an advance.

Interested in a Merchant Cash Advance? 

Contact us at Nations Capital Financing if you’re thinking of applying for a merchant cash advance. We’ll be glad to explain how it all works, and about what your options might be in securing one from our institution.