Having a quick way to obtain capital is a must for some small business owners. Options like traditional loans are not always available, leaving owners in a tough position. Yet, a merchant cash advance can be a solution to help grow a business with immediate access to capital.

How does a merchant cash advance work? Follow along for some details on this option for business owners.

What is a Merchant Cash Advance?

A merchant cash advance is not a loan. Cash advances provide business owners with access to much-needed cash, and typically have a fast turn-around time since they eliminate complicated application and approval processes. Moreover, desirable funding partners offer unique repayment options such as repayment using a portion of future sales. 

What are the Common Uses of a Merchant Cash Advance?

Merchant cash advances are typically used for projects that owners know will drive immediate revenue. For example, a restaurant owner may use a merchant cash advance to purchase inventory before a holiday or busy time of the year; to renovate or expand their location; or they may use this type of funding to replace equipment that breaks unexpectedly. 

What are the Benefits of a Merchant Cash Advance

The dynamic nature of a cash advance is obvious in terms of the exchange, as the business receives immediate capital in exchange for a percentage of future credit card sales.  However, cash advances offer these additional benefits to merchants:

•    They are quicker to obtain than a traditional loan. Cash advances are  approved in a matter of days whereas banks can take weeks or even months. 

•    Cash advances are easier to obtain than traditional loads, and if you work with the right partner, they also eliminate invoices, writing and mailing checks, and other tedious paperwork.

•    Businesses that haven’t had much luck with banks are  more successful with a merchant cash advance. Those who have been turned down for a loan or who have had credit problems can possibly obtain a merchant credit advance.

•    If sales slow down, so does the amount paid to the funding partner since it is a percentage, not a fixed payment as with a traditional loan.

It's easy to see how there are several degrees of flexibility with a merchant cash advance, which can appeal to many small business owners searching for a dynamic solution.

Does a merchant cash advance sound appropriate for your needs?  You can contact Quikstone Capital Solutions for more information on the advance and to see if you qualify.