In today’s world, small businesses are rapidly increasing and changing the structure of the economy. However, these businesses are failing to procure sufficient funds easily when there is an opportunity to expand the business. Small businesses often struggle to acquire traditional bank loans either due to documentation involved or because they fail to qualify for the credit. Business cash advance is a better way of financing than a small business loan as cash advances are easy to attain and can be applied online with less documentation.

Debt Consolidation

Business owners with low credit score who need finance to support their business will find that acquiring a merchant cash advance loan is a better option. The cash advance can be used either to consolidate all the loans into a single cash advance loan or can be used to meet any specific purpose to which it is applied.

Bad Credit

Merchant cash advance is not just acquired by small businesses to settle loans but are also sought out by business owners with a low credit rating or bad credit. Small business owners with bad credit history are often denied loans by banks and other commercial institutions as they do not meet their eligibility criteria. Cash advances by lenders are the only finance option where the credit rating of the business owner is not considered for approving the loan.These non-bank cash advances aim at providing small businesses an opportunity of investing in the business to grow and prosper.

Collateral Free

Most of the small business loans advanced to owners need to be backed by some guarantee to ensure that the lender will not be at a loss when the borrower defaults for the loan amount. The merchant cash advance is the lump sum amount advanced against the future sales of the business and is free from collateral making it best option for small businesses.

Where to apply?

Merchant cash advances are a kind of unsecured loan which enables small business owners to support their business and put the business back on track.When a business owner is unable to find a small business loan with a low credit score, then the internet is the best place to search for merchant cash advance providers in your area. MCA loans can be applied online where a simple and easy application form needs to be filled by the borrower with relevant details.

MCA loan approval depends on various factors and a business owner planning to avail this cash advance needs to carefully consider these factors to get the loan approval quickly and efficiently.

  •    Merchant cash advance providers required small businesses to be an established one or least one-year-old.
  •    The business should accept sales payments via credit or debit card and should have a verified merchant account.
  •    The average credit or debit card sales per month should meet the lenders specified sales limit to be qualified for the cash advance loan.

However, merchant cash advance can only be availed by the established businesses and not start-ups. Merchant cash advance is one of the viable finance options for small businesses, better than a small business loan from banks and other financial institutions.