What Is A Cash Advance?

If you need cash fast, then a merchant cash advance may be for you. What does it mean though? The easiest way to explain what a cash advance is an alternative source of business funding. This is usually for entrepreneurs who either don’t have the credit rating or cash to get a commercial bank loan.

Contrary to popular belief, merchant cash advances are not a loan. To break it down, it’s considered an advance which is based on the future revenue of a business. It’s a fast way to get cash fast as small business can apply for one and have the money deposited in their account fairly quickly.

Main Benefits of a Merchant Cash Advance

Safe Way of Receiving Cash- A merchant cash advance is a safe way to obtain cash. For example, commercial loans can negatively impact a business credit rating whereas a merchant cash advance is considered a sales transaction which isn’t included on the credit report.

Fast cash and Easy to Apply- The process to obtain a merchant cash advance is a relatively quick process. Lenders will evaluate a business’s financial statements, tax returns and business plans. Now, because the process is easy, this make the money from the advance quicker to access. Commercial loans can take a very long time, sometimes even months to process. Usually, the advance is available within a week of the business submitting the process.

The Approval Rate Is High- Merchant cash advances rely heavily on the performance of a business rather than credit. This means that of a business is stable they’ll be able to qualify for an advance.

A merchant cash advance is a great way to receive cash in a fast and safe way. If you're looking for small business loans or need more information on merchant services, contact the team at Merchant Tree today. 

FAQ About Small Business Loans

It is every small business owner’s dream to grow his business and keep it afloat. Sometimes as an entrepreneur it is not easy to turn your business dreams into reality and keep your business running, at some point you might need financial help...

Choosing The Best POS System For Your Business

Finding the right Point of Sale System (POS) for your business can be a monumental task. But, by making the right choice the first time, you will save yourself and your business a great deal of time and money. To help, here are a few valuable...

Basics Of A Merchant Account

With the tables turning in the business world, many business activities today happen on online platforms. For that matter, as an online business person, you need an account that facilitates your banking needs in the online arena. Merchant accounts...

Welcome to Our New Website!

We've added great new features and updated our content to bring you the most up to date information about our company.  Check back often for updates.