The Benefits of Using Merchant Cash Advances
All businesses need cash. From inventory to payroll, you need to keep enough working capital to respond to monthly, weekly and daily expenses. For many small businesses, and unexpected payment or broken equipment can be a major roadblock. Learn how you can use a merchant cash advance to receive the cash you need and promptly pay any outstanding bills.
A merchant cash advance works by receiving your invoices upfront. Many customers can only agree to payment 30, 60 or even 90 days after you complete a job. This can severely drain your working capital and cause your small or midsize business to have severe cash flow issues. A cash advance lender runs a credit check on your customer. If the invoice is reliable, they will pay you a percentage of the invoice as little as 24 hours.
The speed and flexibility of a cash advance also comes with many other benefits. First, this financing option is available for any business, regardless of your credit score. Your lender will only look at your customer’s credit score. You’ll enjoy a quick evaluation and payment, so you can usually expect to receive your payment between one day and one week.
You won’t have to sign any long, binding contract in order to take advantage of cash advances. Most lenders work on a invoice-by-invoice basis, so you can discontinue this financing at any moment. Unlike a loan, you won’t have to worry about monthly payments, penalties and other binding legal aspects.
A merchant cash advance is one of the only ways to solve cash flow issues without going into debt. Many small businesses are drowning in debt just to open their doors. While a small amount of debt may be manageable, relying on loans and lines of credit for weekly expenses can cause your business to fail quickly. A cash advance may cost a percentage of your invoice, but it ensures you won’t be paying any additional fees.
Sometimes, all your business needs to thrive is some extra cash. Whether you’ve hit an unexpected rough patch or are looking to capitalize on a unique investment opportunity, use a merchant cash advance to respond quickly to any cash flow issue your company may face. The application process is surprisingly simple, and you won’t have to earmark the money for any specific purpose. Use your money now, and don’t let long invoice times keep you from growing your business.