What is a merchant cash advance?

Contrary to popular belief, a merchant cash advance is not a loan. A Merchant Cash Advance gives businesses access to much-needed cash, and provides flexibility in repayment because repayment is usually based on your daily sales. If your business is slow you will pay less and when your business picks back up you will pay more. This helps regulate your cash flow and allows you to repay based on your success.

Why would you need a merchant cash advance?

Have you ever heard the old adage “You have to spend money to make money”? It is not always true but if your business is experiencing a temporary decrease in cash flow it may make the difference between closing your business and being successful. Frequently, a small business will have inconsistencies in their cash flow. Maybe your business is seasonal, like a landscaping company, or maybe your business experiences the ebb and flow of the tourism market. Either way, there will be times when your cash flow is great and times when it is not so great. You still have a lot of the same expenses, such as overhead and payroll, even when you do not have the cash flow to cover it. Maybe you had a piece of crucial equipment break down and you don’t have the cash to repair or replace it. In all of these scenarios a Merchant Cash Advance can help your business through those rough times and keep it growing.

What can a merchant cash advance be used for?

If you need fast funding to continue operating your business or to purchase new equipment in order to expand your business a Merchant Cash Advance could be the way to go. When a traditional bank loan is not an option due to time constraints or credit restrictions a Merchant Cash Advance could keep your business afloat until you start seeing the return on investment you predicted.

When should I apply for a merchant cash advance?

Consider a Merchant Cash Advance when you believe, based on sales projections, that you will be able to recoup the costs of the advance in a short period (usually less than a year). Because a Merchant Cash Advance is a cash advance on your credit card sales it will not tie up your current available credit lines and is not solely based on your personal credit history.

Is a Merchant cash advance hard to obtain?

A quick and easy application process, less restrictive credit requirement and flexible repayment terms could make a Merchant Cash Advance the way to go. A business cash advance is also quicker to secure than a traditional loan. You can have access to the money you need in a matter of days.

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