The cash flow of your business is one of the vital aspects that must be considered at all times throughout your ownership of the business. Money is essential for any business since it is used to pay suppliers, maintain inventory and business expansion. Due to the economic crisis, it becomes evident that cash flow is more paramount than anything else. A business owner who seeks for money will be required to access various sources, with business cash advance lenders being one of the most popular. This is a business financing alternative that has helped many companies to get out of tight financial situations.

Things to know about a business cash advance lender

Business cash advance lenders strive to offer an alternative business financing source that business owner can take advantage of when they don’t have collateral and credit rating is hurting their business. Unlike in the traditional bank loan, a business cash advance will purchase a portion of the future business credit card sales at a discounted price. Once the agreement is reached, the advance will be transferred to your business account immediately. In exchange, the business cash advance lender has the mandate to deduct a percentage of your credit card receivables every month until the advance is paid. This is one of the excellent alternative lending sources that comes with an array of benefits:

No collateral or credit required

Merchant cash advance is one of the safest ways to get the business funding you need. Note that commercial loans are prone to affect your credit rating, but the merchant cash advance does not need any of those since they depend on the future credit card sales. For this reason, your merchant cash advance loan will never reflect on your credit report. On top of that, you will not lose your collateral no matter what since none of your property is tied up with the merchant cash advance.

Quick collection and application

Once you apply for a business funding with a business cash advance lender, your advance will be funded fast, and the application process is straightforward. When you apply for a bank business loan, they will have to evaluate your tax returns, financial statements, and your business plans, making the process long and ambiguous. However, the cash advance lender they only has two things to ponder: the duration in which you have been operating the business and monthly credit card sales volume.

Quick access to business funding

Note that the paperwork required in the merchant cash advance lending is minimal, and for that reason, the turnaround of the merchant cash advance is fast. The majority of business owners can attest that a commercial loan will take months before it is processed, while the merchant cash advance financing is accessible within five days. Merchant cash advance is the best alternative when emergency funds are needed.

High rate of approval

When comparing the rate of approval of the MCA and the commercial bank loan, you will realize that the MCA has the highest rate of approval. Merchant cash advance loans are never denied since the negotiation process starts once a problem is identified.