A lot of small business owners these days are looking for a merchant cash advance as a feasible source of capital to operate their sales and provide a more stable cash flow. However, with the recent downturn of our economy, a lot of banks have tightened up their reigns when it comes to business loans, and people have wisened up on spending their hard earned cash. However, with flexible payment options like a no credit check financing, customers won’t have to be burdened with an enormous one-time payment. But for such payment options to be possible, a business will have to partner up with a merchant service company.
What exactly is a merchant cash advance?
Keep in mind that a merchant cash advance is not the same as the traditional business loan. Traditional business loans offer limited services and lack the flexibility to properly accommodate a modern business. There are a lot of factors to consider such as the interest amounts, long waits for a payment approval, possible bindings, as well as the fixed charge most banks usually require. With a merchant service, such issues are eliminated from the get go. The process is made as smooth as possible, and your access to the funding is as little as four days.
How does merchant cash advance work?
Essentially, the merchant service company will acquire a sum percentage of your credit card receipts and advance those credits up front. You can use the cash without restriction. Then the merchant service provider will deduct a small percentage from your future credit sales daily. Keep in mind that there are no fixed payments per month; rather, a small portion of your credit transactions will be deducted right when your advance has been paid back.
With a cash advance on your hand, you can buy new equipment, restock your product, use the money on marketing schemes, and create expansion opportunities for your business.