It takes money to run a business and sometimes extra financial help is needed. Merchant cash advances are an increasingly popular way to get that extra financial help.
A merchant cash advance is simply funding that comes from a credit card processor or third-party lender who provides an “advance” against your credit card volume. The lender purchases a portion of the business’s future credit card sales and the funds advanced must be repaid via automatic deductions from the business’s credit card sales.
Advantages of merchant cash advances include:
Quick access to needed funds.
An easy approval process.
Funds can be available even to businesses with poor credit.
Funds are available for a range of business purposes.
How to Use Merchant Cash Advances Successfully
Merchant cash advances can be used for:
Purchasing new equipment or upgrading existing equipment.
Expanding business inventory or bring new products into the business.
Expanding a current location or opening another location.
Hiring new employees.
Covering unanticipated expenses.
Introducing new marketing strategies and marketing methods.
Developing new products or services.
Paying off existing debt.
Preparing for a busy season or handling an unexpected surge.
Redesigning a store or display systems.
Using the funds for vendor services.
Avoiding late fees and penalties.
How to Get a Merchant Cash Advance
Merchant cash advances can be secured by contacting your credit card processor or lender, completing a merchant cash advance application, reviewing the cash advance offer and its terms, and signing the acceptance documentation.
Tips for Merchant Cash Advances
Here are some tips for successfully using merchant cash advances:
Make sure this financing approach is right for your business situation.
Carefully spell-out your financial goals.
Carefully read the terms on the merchant cash advance.
Decide your repayment period.
Avoid delinquencies and negative balances.
Seek Expert Financial Assistance
Small businesses succeed with expert financial assistance. Contact Alternative Capital Source, with offices in Fort Worth and Irving, TX. We offer a wide array of excellent business loans and financing options to fit your unique needs.