Of all the ways to finance your business when you need extra cash, nothing is as easy as getting a merchant cash advance. Here are the typical processes of several types of financing, contrasted with the process of getting a merchant cash advance.
Bank Loan, including Small Business Loans
Getting a bank loan requires a lengthy loan application process that includes personal and business income information from pay stubs, tax forms and a credit check; personal meeting(s) with a loan officer; and waiting several weeks or even more than a month for a decision.
Crowdfunding
Crowdfunding seems so easy, like getting something for nothing in most cases. The real process requires setting up a web site, intensive marketing for weeks, months or years, and paying a considerable fee to the crowdfunding site, as well as tax obligations for the money raised. If the crowdfunding is investor-type, there are also federal and state regulations to comply with as well as investors that expect a return on their investment.
Angel Investor
This isn't a loan and there is no interest to pay, but even the most angelic investors want to get their money back and then some when your business takes off. And the process of finding investors can be as difficult and time consuming as getting a bank loan, if not more so. Investing in a business can be a risky endeavor, so most investors take considerable convincing before they are willing to commit.
Merchant Cash Advance
- An easy application process that can be completed online in just a few minutes.
- Quick decision and immediate disbursement of funds, usually within 48 to 72 hours.
- No credit check and funds have no negative impact on your credit rating, since this type of financing is not considered a loan, but a purchase of future receipts.
- Focused on your business track record of sales, not past mistakes or the owner's personal credit score.
- Flexible repayment terms are taken as a percentage of daily sales, so a slow day means a lower payment.
- Funds are withdrawn from your account automatically--never a late payment to worry about.
The Easy Solution to Business Financing
Bank loans require businesses to submit their plans on how they will spend the loan proceeds, and the loan can be called if the money is spent differently than agreed. Merchant cash advance providers trust business owners to spend the money where it most benefits them, giving owners more autonomy to act in their own best interests if their needs change rapidly.
There is no limit to the ways you can use funding from a merchant cash advance. Whether you use it to purchase equipment that will make your business more money, to purchase inventory you can resell for a profit, or to expand your business into a bigger space or multiple locations, you will not deal with red tape or long waits before you can get the cash you need.
