Businesses of all sizes need working capital to keep operations running smoothly. For small businesses, finding the right financing solution can be a challenge — especially when it comes to traditional loans. Merchant cash advances (MCAs) are an increasingly popular alternative for companies in need of short-term funding.
Fast Access to Working Capital
Merchant cash advances provide businesses with access to capital quickly, which is why they’re a popular option for companies in need of quick financing. The application process is typically easier and faster than traditional loans, and approval is often based on the business’s credit card sales rather than its credit score. This makes it an ideal choice for businesses that don’t have established credit or haven’t been in operation long enough to build up a strong credit profile.
Payments
Once approved, the business agrees to repay the advance plus fees over time from a small percentage of sales. This is done through daily or weekly payments, which are automatically deducted from the business’s bank account or credit card sales until the full amount is paid back. The repayment terms are typically much shorter than traditional loans, making them well-suited for businesses in need of quick access to capital.
Greater Flexibility
In addition to providing fast access to capital, merchant cash advances also offer more flexibility than other financing solutions. Businesses can use the funds for any type of working capital, such as inventory purchases, equipment upgrades, marketing campaigns, or other operating expenses. They don’t have to provide collateral like a traditional loan and there are typically no restrictions on how the funds can be used.
At the end of the day, merchant cash advances can be a great option for businesses in need of fast capital. They provide access to funds quickly and there are no restrictions on how the money is used. Contact Spearhead Commercial Financing today to learn more about our merchant cash advance program.