How Small Businesses Leverage Merchant Cash Advances For Growth
Whether it’s a new piece of equipment, a promising piece of commercial real estate or something else, the expansion of small businesses of all types can be expensive endeavors that require funds which many owners at this early stage of development simply do not have. There are several methods for funding growth and development of a business, but many of them offer terms which do not take the financial needs of the business in question into consideration and are oftentimes hard to qualify for in the beginning. However, a merchant cash advance (one of the most overlooked options when it comes to financial assistance for a business) offers exactly what a business needs in order to expand and make a name for itself in the industry and surrounding market.
What is a Merchant Cash Advance?
A merchant cash advance is a lending arrangement in which small businesses will receive the agreed-upon amount of cash, and in order to repay the lender they will have a small percentage of their daily sales which are completed with credit or debit cards withheld and sent to the lenders. This is a unique system, and functions unlike any other available in the current economy.
What are the Benefits?
The benefits for small businesses which choose to use a merchant cash advance are numerous. First, because the repayment process only claims a certain percentage of a day’s credit and debit sales, having a slow day will not break the bank or cause unwanted financial tension. In order to further relives stress for the business owner, the application process is fairly simple, and almost any business which regularly completes credit or debit sales will qualify. In a market that is not always particularly aware of the challenges which a small business faces regarding acquiring needed funds, this can be a huge breath of fresh air.
How Do They Facilitate Growth?
Not only does this arrangement provide much-needed cash for the business in question, but the repayment method leaves the existing cash flow largely untouched, meaning that the business is free to use funds as it needs to in order to move forward. The small, daily payments required through this method put less financial strain on a business than the large monthly ones called for by other loans.
Small businesses all have unique needs, so finding a great loan can be problematic. Merchant cash advances are here to provide owners with the cash they need and the consideration that they deserve as a new part of the business world.