The Benefits of Merchant Cash Advance
If you’re a small business owner and you’re looking for ways to improve your monthly cash flow, you may be wondering where to get started. If you’re not looking for a traditional loan, one option you may want to consider is a merchant cash advance, also known as an MCA. MCAs are not technically loans, but rather advances suited to business owners who have a certain number of predictable credit card transactions per month. If traditional loans are not an option for you, there are a few reasons you should consider an MCA instead. Take a look.
It’s a Great Short-Term Tool
Traditional financing methods are often interested in your credit score, but MCA companies tend to weigh your credit card transactions more. This means that even if you’ve only been in business a short while, it may still be available to you! While MCAs overall are often more expensive than traditional options, some could be more cost-effective than charging your business expenses to a credit card, since interest rates vary. This makes MCA loans useful short-term tools to get through rough patches or take advantage of sudden opportunities.
It’s Quick
Merchant cash advance lenders don’t usually drag out the approval process – you could get your funds in days or sometimes even hours, as opposed to the weeks or months a more traditional bank loan could take you. Even with potentially higher interest rates, the quick access to funding could be worth the trade-off.
You Can Shop Around
While it might be tempting to work with the first lender you find, shopping around and doing some comparisons could be beneficial in the long term. For instance, each lender could have a different annual percentage rate or require various fees, so taking the time to find someone who suits your business needs could actually save you money over time.
It’s Available to Many Businesses
As opposed to traditional loans, which could be difficult to secure for certain types of businesses, MCAs can be a good match regardless of industry. This means that even if you run a restaurant or some other small service business, you could be able to secure an MCA.
If your small business needs more funds to maintain steady cash flow throughout the month but traditional loans aren’t an option, consider getting a merchant cash advance instead. Even if you’ve only been in business for a year, an MCA could be an option for you! With these facts under your belt, you can feel confident about making the right choice for your business finances.
