10 Aug 5 Things You May Not Know About Merchant Cash Advance
If you have a business and you need capital now, you may need to acquire a merchant cash advance. Sometimes, you just may fall behind, and thats okay. Making enough revenue to always keep the lights is hard work, and you may need a cash infusion to get you through. If you are considering a business cash advance, there are specific things that you should know in advance.
It’s Simple to Apply
If you need money to get your business through a tough period, this is a fast and efficient way to do so. In the vast majority of cases, you simply need to fill out a form and give some basic background info on your business. You can usually get the funds you need deposited into your bank account within a few days.
This in stark contrast to the experience you would have going to a bank to get a loan. You have to complete a ton of paperwork, and the loan may take weeks to obtain, which is often longer than you can afford to wait.
You Need to Provide Some Basic Info
In order to obtain a merchant cash advance, your business must meet certain requirements. You have to have been in business for a specific amount of time (usually 2 years), and be able to provide proof to this effect. So sorry startups, you probably aren’t eligible for a cash advance. Come back in two years!
On top of that, you have to provide your gross monthly revenue that you business generates, as well as bank statements to back this up.
Not an Indication of Problems
A common misconception among business owners is that the need for a cash advance is indicative of a problem with the business, but this is just not true. The ebbs and flows that come with any company are completely normal.
For some businesses, this type of financing may be used in combination with others to achieve the desired goals for the business.
Doesn’t Show on Your Credit Report
You don’t need to be worried about your credit report with regards to getting a business loan since it won’t show up on it. You won’t need to be excessively concerned when applying for different sorts of financing since this won’t have any effect on your organization having the capacity to secure it.
Spend the Money How You Want
Commonly, if you obtain a loan at a bank, you will need to give a point by point rundown of what you expect to do with the cash. With a merchant cash advance, this is not the case. You will have the capacity to do whatever you please with the money and no clarification is normally necessary about how you mean to use it.
Having the capacity to keep your business working at all times is vital. The fact is that under the right conditions, a merchant cash advance may be just what your business needs to not only survive, but thrive.