Have you been looking into raising capital for your business? If you are a business owner and accept
credit cards at a brick and mortar location there is an untapped alternative funding option that you need
to know about. It is called a Business Cash Advance or Merchant Cash Advance. This short term financing
is actually a cash advance against your future credit card sales.
How it works is a small percentage is deducted from your monthly merchant account sales until the
advance is paid in full. Instead of a fixed monthly amount each month like a loan, it is a set percentage
amount of your monthly sales. If you have a bad month the same percentage amount is taken out of your
sales but that amount is not as large as if you had a great month. These payments work with your monthly
cash flow.
Business Cash Advance Benefits to Merchants:
- No Application Fees, Appraisals or Closing Costs
- Will Not Affect Personal or Business Credit Lines
- No Obligation to Find out How Much You Qualify For
- Flexible Repayment Terms
- Minimal documentation
- Payment Aligns with Cash Flow
- High approval rates- Currently averaging 85%
- Leave Traditional Lines of Credit Available
- Not based on personal credit history
- Easy application process
- No Personal Guarantee or Collateral
- Collection is automated through future credit card swipes - no checks to write
- Entire debt obligation usually completed within 6-8 months
- Fast funding - as few as 7-10 business days from application
Business Cash Advance is a unique alternative funding source for merchants. It is
an untapped short term financing that can help businesses get working capital they need now based upon
future credit card sales. Most merchants do not even know that this type of funding is available.
Ways Merchant Use Business Cash Advances:
- Pay off Business Debt
- Grow the Business
- Working Capital
- Renovate the Store
- Upgrade Equipment
- Make Repairs
- Pay Taxes
- Pay Payroll
- Open New Locations
- Purchase Inventory at Discounts
- Advertising and Promotional Programs
If you business does not accept credit cards or have a brick and mortar location, there are still
other ways to get working capital. In my article; Small Business Funding and Business Startup Loans I discuss various types of
financing available to small businesses. Sometime these creative funding types are often overlooked
when a small business is looking for working capital or help with debt restructuring or settlement.
There are many ways that you can jump start your business with the cash you need.
