There are many businesses around the world that rely heavily on a merchant cash advance relief, a smart system that helps businesses to bridge the gap that they have financially. The process of this is very simple, a small loan or cash advance will be given to a business that will then be repaid back to the lender by way of a percentage of debit card sales that go through the business. The amount of money that a business could look for will range between $3k and can go up as high as $250k. As to whether or not this is for you, it is important to weigh up the pros and cons.
What Are The Benefits of a Merchant Cash Advance?
The obvious advantage here is that the business can secure funds which it will be able to use in the short term for things like staff pay, marketing, new infrastructure, or rental on the premises. This can come at a perfect time if businesses are seasonal and they are struggling to make it until the season comes around once again. These advances give businesses quick access to funds and there is a very simple approval process to go through in order to get it. Businesses with bad credit need not worry as they too will be able to gain access to a service such as this, and it is suitable for an enormous range of business purposes.
Drawbacks of a Merchant Cash Advance
The main reason you will have to be careful as you decide whether or not this is for you is that the fees on a cash advance are often much higher than something like a loan. It is however for this reason that so many providers are able to accept businesses with bad credit, and they add this risk into the cost of the advance and the fees which they add on top. There is also a lot less flexibility with regards to changing your merchant providers in the same way that you would be able to with a loan, so it is always important that you check the small print before you sign for the advance. Finally, it is also worth considering that when you do begin to pay the money back via the receipt of credit and debit card transactions, that this is going to significantly reduce your cash flow in the future.
These are all the things that you need to be weighing up before you decide whether or not a merchant cash advance is a right move for you. There are many providers who you can choose between and each will offer something different with regards to the fees and the interest that they charge, as well as the flexibility which they are able to offer. If you do this right and get the right company to provide the advance then you can most certainly fix a short term problem using a service like this.