Whether you are looking to expand your small business or just need a little help covering operating expenses in the short term, getting the funding you require may prove to be difficult when relying on traditional funding sources such as a business loan through your local bank. This is because these traditional funding sources often require you to have excellent credit and substantial collateral. These requirements can be problematic for many small business owners. Thankfully there is another option that can make getting the funding you need quite a bit easier. This option is small business merchant cash advances. In this article, you can learn more about the three ways in which these cash advances can make it easier for you to get the small business funding that you require.
#1: Small Business Merchant Cash Advances Do Not Rely On Your Credit Score For Approval
Perhaps the biggest obstacle that many small business owners run into when trying to secure funding is a lack of sufficient business credit history. Small business merchant cash advances eliminate this obstacle because, unlike many other funding options, these cash advances do not rely on a credit score in order to be approved. Instead, your ability to qualify for this type of loan will depend upon your recent credit and debit card sales. The more sales you have processed recently, the more likely you will be to qualify for the funding you require. This is because a merchant cash advance allows you to borrow against your future sales.
#2: You Can Often Get An Instant Decision Regarding Your Application For A Small Business Merchant Cash Advance
Small business merchant cash advances do not require a credit check or verification of how much money you have in the bank in order to determine whether or not you are approved. Instead, these loans simply require verification of your identity and the volume of your recent credit card sales. Since this is information that your payment processor will already have, you can often get an immediate decision regarding your application for a cash advance. This ultimately means getting access to the funds you require much faster.
#3: Small Business Merchant Cash Advances Are Only Repaid When You Make Sales
Another major issue that many small business owners encounter is their ability to commit to a set loan payment each month. Since many small businesses experience rather significant variations in their sales each month, it can be hard for business owners to commit to their ability to make a large loan payment every month. Merchant cash advances help to make this burden more manageable by only requiring you to make a loan payment whenever you actively have the sales to support these payments.
For more information, contact a local company, like UrLendr.Share