Small businesses experience times when their operations need a boost. Applying for and waiting to be approved can take weeks. There are many situations in which the funds are needed right away. This is where a same-day, merchant cash advance comes in handy. It’s important to know what a merchant’s cash advance is, how they work, and basically where to find them.
The 4-1-1 on Merchant Cash Advances?
Even though a cash advance is basically a loan, it is really an advance based on the overall amount of money you take in from credit card transactions. The funds are disbursed immediately and are paid back using a portion of your day-to-day credit card transactions. If you don’t accept credit cards, your business won’t be eligible for this type of loan.
Types of Merchant Cash Advance Programs
With a traditional cash advance money is deposited in your bank account immediately. Consolidation loans give you a chance to pay off smaller loans so that you only make one payment. There are several other options to choose from. Do your research to find what will work best for you.
The Advantages of a Merchant Cash Advance
Merchant cash advances have many benefits including fast funding, flexible payments, and the option to use the money any you way need to. You don’t need a high credit score either.
The Potential Downsides of a Merchant Cash Advance
Merchant cash advances have disadvantages that could be costly. They can be more expensive than other types of loans and they can have a negative impact on your cash flow if you choose too high of a percentage of your sales to pay the loan back.
When Should You Apply for a Merchant Cash Advance?
Merchant cash advances are great when you need fast cash or your cash flow isn’t where it needs to be. If you need working capital to replenish inventory or to get through the slow season, you may want to consider a merchant cash advance.
Where Can You Get a Merchant Cash Advance the Same Day?
Since banks don’t offer this type of funding, you will need to check in with alternative lenders, especially those that offer POS options. Companies that offer online cash services will usually offer merchant cash advance options as well.
How Do You Apply for a Same Day Merchant Cash Advance?
If you want to apply for this type of cash advance, the first step is determining whether or not you are eligible. Gather all of the documents you need and figure out what percentage of your sales will be used to pay back the loan. Go over the terms and conditions and wait for approval. A merchant cash advance is a great way to give your business a boost as long as you are aware of the risks. You can take advantage of all kinds of opportunities if you use a merchant cash advance to its fullest potential. Always be aware of what your options are before you borrow. A cash advance may be the best choice.