For small business owners, financing their businesses is a tricky process that takes many factors into consideration. There are a variety of financial options to choose from such as loans, trade credit, credit cards, leases, lines of credit, and bonds. However, there is another option, a rather unique one, that is becoming more popular with small businesses: cash advances.
Cash advance merchant services provide financial aid to small business owners with a very flexible method of repayment. Basically, a merchant cash advance is similar to (though not quite) a loan, in that a lump sum is loaned to the borrower, who has to pay the loan back through periodic merchant changes from credit or debt card purchases. In other words, a certain percentage of purchases made by credit and debit cards go toward the lender, oftentimes automatically transferred from the card reader, until the loan is paid off.
Merchant account services are highly desirable for several reasons. First, they enable the borrow to avoid going into debt by providing instant financial support. For businesses that are struggling and may have obligations with financial institutions such as a bank, merchant cash advance companies provide invaluable resources that provide quick, easy cash advances.
Second, merchant payment services are desirable for small businesses that have a below-par line of credit. Businesses with a low credit rating can face difficulty when applying for a bank loan, for example. Merchant cash advance services pay more attention to a business’s performance rather than its credit, making them more accessible than “traditional” lender services.
Third, payments are based on sales rather than a fixed amount. A business that does poorly, for example, does not get in trouble with merchant cash advance providers because since the payments are based on sales, they are already covered. The performance of the business itself has little to do with the payment options, affording small businesses considerable flexibility.
Easy cash advances are used by 25 million Americans every year. For your small business needs, merchant cash advances are an invaluable tool.