Small Business Funding: Is a Merchant Cash Advance Right for You?

Traditional financing takes time. Time many small business owners simply do not have. If your business is in need of capital now, you have likely already researched some of your options. If so, have you considered a merchant cash advance? If you would like to learn more about what this option is and how it can help you, the following information will get you started.

What is a Merchant Cash Advance?

Essentially, a merchant cash advance is a lump-sum payment a business receives in exchange for an agreed-upon percentage of its future credit and debit card sales. For some time, this option was utilized by businesses whose sales were primarily from credit and debit card sales (e.g. restaurants and retail shops). Now, merchant cash advances are used by many business types. In fact, thanks to alternative lenders like First American Merchant, “high-risk” businesses that banks won’t touch can secure the financing they need. Even those who struggle with bad credit can easily apply for FAM’s bad credit merchant cash advance.

The repayment process will differ depending on the lender you choose. You will receive your sum of cash upfront in exchange for a percentage of future credit and debit card sales, or you will receive cash upfront in exchange for fixed daily or weekly debits from your bank account. When applying for a cash advance, make sure you research the repayment process and choose based on what is best for your business.

Is it Right for My Small Business?

There are many different reasons why business owners choose a merchant account over other options. Some entrepreneurs have bad credit, bankruptcy or limited collateral which prevents them from securing a traditional business loan. Banks are also wary of working with business startups because of the limited financials and time in business.

The fact that repayment is flexible is very attractive. During slower months, your business pays back less. During busier months, you pay a little more. Another huge benefit is the ability to secure capital to cover day-to-day operating costs quickly. With FAM, for example, you can receive your cash in as little as 24 hours.

How do I Choose a Lender?

Which lender you choose will entirely depend on their willingness to work with your small business. That is why many turn to a high-risk specialist – like FAM – for their cash advance needs. Unlike working with a traditional lender, your business can boost its working capital, regardless of the reasons it is labeled “high-risk”. Just be sure you carefully research all rates and terms before you submit your application with any lender. It is also important to see what kind of support team the company will offer you. You never know what questions or concerns may arise. In addition to flexible funding options, make sure the company offers an experienced staff to help you.

Business Funding expert, Nathan Hale, founded First American Merchant with his eyes set on helping the backbone of our country, small business owners. His passions include writing/producing music, and travel. First American Merchant is America’s Best bad credit merchant cash advance company, serving both traditional and high-risk Businesses.