Benefits of Merchant Cash Advances
Merchant cash advances are basically unconventional business loans. They are generally provided to smaller companies who do not have great credit or lack sufficient collateral to secure a conventional business loan. There are many benefits of merchant cash advances that your company should take advantage of.
One benefit is the high approval rate. The qualifications for merchant cash advances are far less stringent than conventional business loans, therefore they are easier to acquire. Your company will not be required to submit as many documents either. Approval is generally an easier and simpler process which makes getting the cash that much faster.
Repayment is also revenue based, and generally handled by a third party. So long as your company is making money, you will be able to repay the cash advance. This is especially important if your company experiences fluctuations in sales. When your company is doing well and making lots of money, you repay more of the loan during that time. On the other hand, if you are experiencing a slump in business, you will repay less of the loan so the risk of repaying standard amounts is mitigated.