Is a Merchant Cash Advance the Best Option for Your Company?

Merchant cash advances can be helpful for small business owners who find themselves in a difficult situation and need a little extra cash to get them through, cover expenses or take advantage of opportunities. They are given to businesses by banks or other lending institutions.

A merchant cash advance might be the right option for your business if you’re looking for a way to raise capital quickly. It is an alternative to traditional bank loans for small businesses looking for short-term capital. They can be an effective way to bridge the gap between their receivables and the funds required to service them.

How Merchant Cash Advances Work

Merchant cash advances are typically approved and given considerably sooner than traditional loans. The repayment period for this short-term loan ranges from a few months to a year. There are three main steps in the merchant cash advance process: application, funding distribution, and payback.

During the application, there isn’t much paperwork required. However, you will need to give credit card receipts and/or credit card processing statements, statements of business bank accounts, bank routing numbers, and pertinent business data

Then the financing company will look at your sales, specifically the average value of your card transactions. Based on that they will offer you a sum of money. You have to accept the advance and pay the lender a percentage of monthly card sales.

Furthermore, you can frequently select daily, weekly, or monthly payback options. The lender deducts a percentage of the sale price (usually 10 percent ). Your income determines the amount you pay. For example, if you have a high volume of credit card sales in one week, you’ll be able to settle the advance more quickly. Businesses that experience seasonal highs and lows can benefit from cash advances.

Merchant Cash Advances Benefits

As we have previously seen, merchant cash advances are an easy way to receive business capital. Let’s look at some additional advantages they can provide for your company.

Quick financing: Usually, funding takes two to three days to complete.

● Truthful: There are no additional fees; the loan cost is predetermined.

● Simple access: You can obtain a cash advance with no collateral and little credit.

● Flexible Payments: Payment choices are flexible. You can pay what you can afford based on sales.

Simple payback: The lender will automatically deduct repayments from sales, making it simple to repay at a reasonable rate. The debt pays itself off; no additional loan installments are required.

If you are interested in obtaining a merchant cash advance, contact US Capital. Our team is ready to work with your small businesses to choose the best repayment option and gain quick access to financing. A merchant cash advance is a solid option if your company has consistent monthly earnings but does not qualify for a small business loan or does not want the flexibility of receiving finance without guaranteeing your assets against it. Contact us for more information!

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