Are merchant cash advance loans better than ordinary bank loans for businesses?


In the world of business, there is a lot of unpredictability. You may have your short-term and long-term goals, but the business environment may bring forth unexpected outcomes that fall out of your business plans. There could be a slump in sales, increase in the cost of overheads, more competition and such challenges. As a business person, you will need to rise above such obstacles to survive and thrive. You may need also car title loans as well.

This will mean that you may need to seek external financing. There are many options available but circumstances may dictate who you seek your financing from. Merchant cash advance loans are some of the facilities you could use. You also have the option of conventional bank loans. Merchant cash advance loans can be what save your business and this is why.

  • Swift processing and disbursement: Sometimes your business will need an immediate injection of funds. Much unlike ordinary bank loans, your application will be processed within two or three days, and if successful, you could have your funds between two and seven days. Banks will sometimes take weeks or months to process your loan is supposed to meet your emergency situation.
  • No upfront charges: Merchant cash advance loans are affordable as you are unlikely to pay any fees in advance unlike normal bank loans that will have charges like application fees, processing fees and closing fees.
  • Approval rates are high: If you are seeking for advice on merchant cash advance loans, one of the factors that you will appreciate is that approval rates are very high. This is because unlike banks, providers of such loans are not too concerned about your past credit circumstances.

The number of months you’ve been in business and proof of your monthly sales by credit card are all you will need for approval.

  • Flexible payment options: A bank will demand for fixed monthly payments with stiff penalties for default. With funding through the merchant cash advance facility, you will only pay what you pledge which is a percentage of your monthly credit card sales. The more the sales the more you repay and when sales are low, the opposite is true.
  • No requirements for personal guarantees: Merchant cash advance providers are only concerned about your credit card sales from which they source their payments. Banks on the other hand will ask for personal guarantors who will have to pay off your loan in case of a default. Thus taking a merchant cash advance loan will save you the hassle of looking for guarantors.
  • Your personal credit is not in line: A merchant cash advance loan will be pegged to future sales. This means that you can access extra funding from other sources even if your payments are low. Banks on the other hand will not offer you a cash advance if you have previous unmet obligations.

Go for cash advance loans to meet your short-term financial needs for your business.

Gerald Wilson has been in business financial services consultancy for 15 years. Contact him for all advice on merchant cash advance loans.

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