Tips for Getting a Merchant Cash Advance
As it continues to get more and more difficult to secure bank loan funding for your business these days, it might serve you better to look elsewhere for alternative financing. One method that seems to be gaining more traction in the business world is applying for a merchant cash advance. It’s easier than you think, and here you can learn not only what it takes to acquire a cash advance, but tips on how to use it once your application has been approved.
If you’re unfamiliar with how a cash advance works, its function is essentially to lend a business owner money upfront by purchasing a percentage of the company’s future credit card sales in return. Therefore, you can receive the financing within only a matter of days, giving you secure funding to use immediately until you obtain a bank loan approval or other means of alternative funding at a later date. All it requires is sending in an application to the merchant cash advance company, many of which are now available online, and waiting to hear from a representative for further instruction. You may be asked to send in further documentation such as business insurance paperwork or your federal identification number before receiving approval, but if everything checks out, you could be seeing money in your account within a week to be used at your leisure.
Speaking of how to use your new funding, cash advance payments are far more lenient when it comes to how you use them, as opposed to bank loans. Often banks serve you with specific restrictions for how the money should be spent, but a cash advance company generally won’t ask for accounting on how you spend. Therefore, your funding can be used for nearly anything, including such things as advertising, buying equipment, building your inventory, expanding your business or even moving outward to opening new locations. Even mundane, everyday tasks can be handled like consolidating debt, paying yearly taxes, training employees or hiring new ones, making payroll or simply making repairs to your store. However you choose to use your advance payments is solely in your hands, making the decision to opt for a cash advance over a bank loan more and more promising as you go.
Finding yourself in need of funds for your business can be an easy feat to overcome when you have the option of securing a merchant cash advance for quick and reliable financing that doesn’t come with restrictions and hurdles.