No matter the industry, every small business owners need cash to run, survive, and grow, and although there are plenty of working capital loans available, not everyone is eligible for one. If you fail to increase your company liquid assets, you can’t pay suppliers, maintain inventory, hire talents, and invest in business growth.
A Merchant Cash Advance for small businesses is a great funding option because you may not require having collateral or great business history to apply for this loan type. An MCA is an alternative to the complicated approval process and strict credit requirements for a traditional business loan or line of credit.
If you’re planning to apply for a merchant cash advance and wondering what benefits you can get as a small business owner, you’ve come to the right place. In this post, we’ll share four benefits of MCAs and explain why it might be the best small business funding option for your company.
Immediate Access to Capital
The biggest advantage of a Merchant Cash Advance for small businesses is the speed with which you can get a lump sum of cash. As there is not much documentation that is necessary, you’ll get the cash into your bank account in as little as 24-48 hours when applying for an MCA.
This is extremely beneficial when immediate funding is needed. For instance, may be you need a vehicle for your company in urgent, or you need instant money to purchase some important equipment or material to finish a job.
Resolve Cash Flow Issues
Sooner or later, your business may encounter some cash flow problems due to low profit, over investment, high expenses, overstocking, or too high borrowing and withdrawals. Not having sufficient funds in your business may lead to increased interest, missed opportunities, poor relationships with suppliers, restricted growth, solvency, stress, and more.
A Merchant Cash Advance can help small businesses to resolve cash flow issues by providing instant cash. You can use the capital to solve short-term cash flow problems and cover day-to-day expenses.
Simple and Easy Application Process
Getting a Merchant Cash Advance is far easier than many of its small business funding counterparts. The application process is very simple and straightforward and you don’t have to submit endless documentation to approve the loan. Plus, if you don’t have collateral or an implacable credit score, you still could qualify.
If you’re able to repay the full amount on time, a Merchant Cash Advance lender will approve your application. So, if you’re looking for a simple and easy way to secure small business funding for your company, a Merchant Cash Advance might be your best option.
Use Money for a Variety of purpose
Most of the small business loans come with restrictions on how you utilize the amount. For example, equipment financing can’t be used for hiring talent, SBA 504 can’t be used to purchase inventory, and microloans can’t be used to buying real estate or paying off debt. With such restrictions, it can be challenging to find a small business financing option to meet your business’ financial needs.
However, with a Merchant Cash Advance for small businesses, you can use the money wherever you’d like, from expanding the client base to marketing, buying equipment, investing in real estate, hiring talent, and expanding to a new location.
It can be challenging to secure small business financing if you have bad credit history. Fortunately, a Merchant Cash Advance focuses less on your credit score and lets you secure funds in the least possible time. You can leverage the benefit of an innovative and intuitive online lending platform to find and compare a variety of MCA loan offers sold by multiple lenders.
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