Cash flow is a paramount concern for almost every small business owner. When you're facing a period of slow sales or an unexpected expense, that cash flow becomes even more important. While you could deal with problems like these by applying for a traditional business loan, the application process can be daunting and time-consuming. If you have a credit card processor, you may want to consider a merchant cash advance instead. It's an easier-to-obtain loan that's repaid through a percentage of your sales on a real-time basis. Here are a few reasons to consider this to resolve your situation.
You Probably Won't Need A Credit Check
Since merchant cash advances are secured by your actual sales, you won't typically need to have a credit check of any kind to obtain one. The lender will simply confirm your company's sales activity to be sure that you can repay the loan easily. Not only is this beneficial if you don't have the personal credit score to qualify for a traditional loan, it also means you don't have to put up anything else of value for collateral. That means there's no risk of losing your assets.
You Can Apply For And Manage The Loan Easily
Most merchant cash advance loans are simple to apply for. Unlike a traditional loan that requires things like financial statements, business plans, and other reports, a merchant cash advance lender will only look at your company's sales activity. Many also consider the age of the business, looking for companies that have at least some established history to help ensure stability.
You Might Get Your Money Faster
Applying for a traditional business loan is a long process and one that requires a lot of paperwork, reporting and time. If you're in a situation where you need money quickly, you may be looking at other options. A merchant cash advance is much faster to obtain since the application process is minimal and there's no extensive reporting required to support the application. You may find that you have the money in your account within a week if you opt for the advance.
These are just a few of the many reasons why you should consider a merchant cash advance to meet your company's cash flow needs. Don't let your concerns about traditional loan approvals keep you from expanding your business or even supporting your daily operations. Talk with a local merchant cash advance lender today to see what you need to qualify. You may be able to get the cash that you need without worry of your credit history influencing the decision.Share