If you own a small business you have probably heard of a merchant cash advance (MCA) before. A tough economy, coupled with strict stipulations and loan parameters that have been set by traditional lenders, has led to an increase in popularity for this kind of alternative funding.
You may be wondering how to decide if an MCA is right for you. The following are three benefits of utilizing an MCA for your business.
1. Maintains Cash Flow During Times of Growth
When business heats up, and great ideas are coming in left and right, it is handy to have the money you need to make real changes. Noticeable growth can occur when working capital is available in time to take advantage of valuable opportunities. When you have a good idea to increase your growth and expand your business, alternative funding can turn that great concept into a funded reality.
2. Takes Advantage of Available Opportunities
Are you heading into a historically busy time of year? An MCA can help you prepare by paying for the extra salaries of staff you will need to handle the extra business. That will lead to satisfied customers, and even more business next year. Or perhaps use a lump sum merchant cash advance to stock up on inventory or purchase equipment.
The funds can often be directly deposited into the bank account you have set up for your business in as little as ten days. Take advantage of this and jump on the chance to grow.
3. Puts Time and Wisdom on Your Side
Savvy entrepreneurs thrive when they wisely use a merchant cash advance. Traditional funding can be a long, painstaking process ranging from application, to approval, to closing, to disbursement. The busy entrepreneur could do so much more with the time required to obtain traditional funding.
A merchant cash advance is an unsecured loan so you won’t be required to put up any collateral. And you won’t be penalized if your credit is less than perfect, The repayment process is light and easy because the plans typically work with the flow of your business, withdrawing a percentage of your daily, weekly, or monthly credit card sales to pay of the loan amount.