Making improvements to your small business can be costly, have you ever considered the benefit of a merchant cash advance? Merchant cash advances can benefit your business and help increase your bottom line. Here are four ways that having a merchant cash advance will fit into your small business plan.
Cash flow issues
Some businesses have cash flow issues and need assistance but cannot secure a loan from a bank due to credit issues or revenue. A merchant cash advance allows businesses to secure a lump some of money and instead of having a monthly loan payment they pay it back with a percentage of their monthly credit card sales. Merchant cash advances help to lessen the stress on a business in order for them to be able to pay bills and their employees.
Tailored for small businesses
Merchant cash advances are tailored for certain businesses such as restaurants, service related businesses as well as small businesses. Merchant cash advances allow these types of businesses to buy necessary appliances, or provide staff training's in order to make their business thrive. With small businesses sometimes loan options are very limited and this allows them to secure the financial help that is necessary.
Collateral not required
With most loans, banks require collateral in order for them to provide a loan. With merchant cash advances, the lender bases the advance on credit card sales and does not require you to list collateral in order to secure the advance. This helps so that the business can get the money they need. Since a merchant cash advance is just a sales transaction it does not show on your credit report. This helps, as it will not have a negative affect on the business owner’s own credit score or debt to income ratio.
Easy to secure a merchant cash advance
Even if your business has not been open for long it can be easy to get a lender to provide you financial assistance. With traditional loans there is a ton of paperwork, inquiries on credit and financial history of your business. With merchant cash advances the lender typically looks at like the last 6 months of bank statements and your credit card sales to see if there is enough of an income to be able to provide an advance. The lender tends to focus on the likelihood of getting repaid. As long as there is a good amount of revenue they see it as a good sign.
Merchant cash advances can be very beneficial to any small business that is trying to make improvements to their day-to-day operations. These types of improvements could include training or purchasing new equipment. Quikstone Capital Solutions can help to secure the financing needed to make these improvements in the future for small businesses.
