How a Merchant Cash Advance Can Boost Your Business

Have you hit a point in your business where you know you’re ready to expand but you’re lacking the capital to make it happen? Maybe you need to grow your workforce or maybe you need to invest in more inventory to increase production. Whatever the need may be, finding those extra funds can be easier than you expect. With an alternative loan such as a merchant cash advance, you can receive funds quickly and repay them at a pace that works for you.

What Is a Merchant Cash Advance?

A merchant cash advance is a way for small or mid-sized businesses to receive financial assistance, that doesn’t require a lengthy loan application process or a trip to the bank. With traditional loans, your credit is a major factor, which means new businesses are often denied. With an MCA, your approval is not based on credit. Instead, approval is based on your sales history. When applying for an MCA, you’ll provide your lender with bank statements or statements showing your business’ credit card transaction history. As long as they see satisfactory cash flow, you’re likely to be approved.

What Are the Monthly Payments?

The repayment structure of an MCA is what makes this type of loan is most attractive. With many other loans, you’re locked into a substantial monthly payment regardless of your income that month. With a merchant cash advance, you pay your lender a percentage of your sales that month. During lucrative months, your payment will be larger, and during slower months, your payment will be smaller. This is especially beneficial for anyone who faces substantial ups and downs in their business.

How Can These Funds Be Spent?

This may vary from lender to lender, so be sure to investigate lenders before making a decision, but generally, a merchant cash advance can be used for any business-related expenses. So if your business is ready for expansion and you need to hire more employees, the funds can be spent hiring and training your new team. If you need to increase production, the funds may be spent buying more inventory or investing in new equipment. If you’ve simply got a handful of operating expenses to cover, an MCA can be used to keep your business afloat.

Whatever your needs, a merchant cash advance may help your business finally excel to that next level. Talk to an alternative lender today to see if an MCA is ideal for you.