Top Five Advantages Of Getting Merchant Cash Advance
Having a smooth cash flow is very important for every business, irrespective of its size. Cash flow enables the business to maintain the inventory, pay to suppliers on time, and make the business grow without any interruption. Those business owners who don’t have enough cash to invest in their business shall seek any of the financing options that are available in the market.
Off late, merchant cash advance, a type of financing option, have become more very popular among business owners as it offers outstanding advantages to the borrower. The top five advantages of getting merchant cash advance are described in the following:
Your Credit and Collateral are not under risk
When you get a traditional loan, it is properly documented, reflects in your credit history and thus may affect your credit rating. Additionally, the borrower may also demand you collateral and thus you are also risking your personal asset in form of collateral. But this is not going to happen when you receive cash through merchant cash advance as it is not considered as loan but just a financial transaction. Moreover, there is no collateral needed to get this financing. Therefore merchant cash advance is a safe way to access the money without bearing any risks.
Easy and painless process
Getting commercial loans are always painful and time consuming process as the lender evaluates borrower’s credit history, financial statements, business plans and tax returns. But getting merchant cash advance is a painless process, right from start to finish. Merchant cash advance providers just consider two criteria: monthly credit card sales and duration of time in business.
Immediate access to cash
As getting Merchant Cash Advance process involves less paperwork, it helps the business owners to get the working capital immediately. It may take several weeks or months to obtain a commercial loan, but Merchant Cash Advance can be obtained in within a week. Therefore, Merchant Cash Advance is a great way to get working capital in a very short duration and revamp their business as quick as possible.
Higher Approval rates
While most of the commercial loans rely on credit rating and financial background of the applicant, Merchant Cash Advance evaluates the applicants’ current or real business performance. Therefore, approval rates are much higher than compared to traditional business loans.
Easy repayment system
In traditional or commercial loans, you have to repay the money in fixed monthly installments. But in Merchant Cash Advance, you are repaying the money based on your credit card sales, which means small portion of money from your credit card sales is automatically paid to the lender’s bank account. Here, you need not worry about repaying money and you repay only if your business has earned good money. With this feature, you need not stress your mind in paying monthly repayment and concentrate more on your business.
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