If you are operating any small business, it is evident that you must experience some cash flow issues due to unexpected expenditures. If that is the case, a merchant account cash advance is readily available to offer any business funding you might need.  Merchant cash advance is a financing alternative that provides a quick means for small businesses to get an influx of capital to avoid getting into debt or risking a loss of credit.

How Merchant Account Cash Advance works

Before applying for a merchant account cash advance, you need to understand how it works. This form of alternative lending is accessible for the business that accepts credit cards as their only form of payment. Once you apply for a merchant account cash advance, the lending company will evaluate all the sales records of previous months to find out the average sales volume of your enterprise in one month. The merchant cash advance company will then use the average to determine the amount of cash they will give to you. The majority of businesses have obtained a 100% of their prospective credit card receivables as a cash advance loan. For your merchant account cash advance to be cleared, the lender puts an actual credit card receivable which was transacted in that particular month is put on hold. A portion of the monthly credit card sales is then deducted by the merchant cash advance lender until the advance is repaid.

Typically, a merchant account cash advance a transaction where the merchant cash advance lender gives a business owner an advance in exchange of their future credit card receivables. The advance is then repaid from the future credit card business sales of the business as they come along. Therefore, you don’t have to worry about defaulting on the loan since there is no fixed monthly payment.

Benefits of obtaining a merchant account cash advance

Note that a merchant cash advance will provide instant access to business funding. Once you decide to apply for a traditional bank loan, you will have to wait for a long period of time before your funds are disbursed. When it comes to merchant cash advance, you are assured to get the funds quickly, especially when your records show that you have a strong credit card sales volume. On top of that, the amount of cash you will get will depend on the projected sales for that specific month. This offers flexible capital ceiling while preventing the necessity to apply for expensive business funding.

Another benefit of merchant account cash advance is that it protects you from over-borrowing. For the reason that the actual sales records determine the advance amount, an entrepreneur does not have to worry about obtaining a huge loan that might be hard for him to repay via the usual sales activity.

If you operate a small business that is experiencing cash flow problems, visit a merchant cash advance lender and seek financial help. Make sure that your business accepts credit card transactions. This is a perfect tool to keep your business up and running when cash flow issues arise.