Merchant Cash Advance for your business
When you’re in
charge of a business, there are inevitably going to be moments where you need
access to more funds than you actually have on hand. If you need quick
access to working capital, you may be considering a merchant cash advance. But
before you take one on, be sure to research that an MCA is for you.
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| Finance options for business |
What is a merchant
cash advance?
Simply put, a merchant cash advance is a lump sum of money
that you, the borrower, receive at a fast turnaround. You then repay the
advance through a percentage of your credit card sales on a daily basis.
Merchant cash
advances make the most sense as a financing option for short-notice issues,
such as making payroll or rent. However, they can be used for a number of
business expenses, like financing a piece of equipment, purchasing inventory or
expanding your business.
Quick access to
financing?
Again, a merchant cash advance is a great option if you’re
temporarily short on funds and need to cover a cost quickly. Unlike many
traditional bank loans that may take days or weeks to process, most merchantcash advances involve an online application; you could potentially see the
advance hit your business account within a few days.
Lenient application
criteria
Another difference between merchant cash advances and traditional bank loans is that there is a wider range of accepted applicants. Traditional lenders typically only approve business owners for funding when they have good revenue, several years in business and a good credit score.
Another difference between merchant cash advances and traditional bank loans is that there is a wider range of accepted applicants. Traditional lenders typically only approve business owners for funding when they have good revenue, several years in business and a good credit score.
Merchant cash
advances are a viable option for business owners who don’t have good credit
scores, or who haven’t had enough time in business to build a solid history of
creditworthiness and profitability. Since merchant cash advances are paid back
through a percentage of your future sales, credit score is not nearly as
important a factor as it is for other types of lenders.
No collateral
required
Again, you’ll find out whether you have been approved for a merchant cash advance quickly—and unlike other types of funding, you won’t have to put up collateral against the amount you borrow. This is because merchant cash advance providers look to your current sales to get an idea of whether you’ll be able to pay back the lump sum, and not necessarily your business credit history.
Again, you’ll find out whether you have been approved for a merchant cash advance quickly—and unlike other types of funding, you won’t have to put up collateral against the amount you borrow. This is because merchant cash advance providers look to your current sales to get an idea of whether you’ll be able to pay back the lump sum, and not necessarily your business credit history.
Being in
control of a business is hard, and finding the right financing can be quite a
chore. If a Merchant Cash Advance sounds like it might be a viable
option for your current situation contact NorthWest Finance thru their website www.merchantcashadvanceus.com.
NorthWest works with many types of businesses nationwide.
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