Odds are if you have less than good credit, most financial institutions will deny or decline a small business loan. The good news is that this isn’t your only resort. With a merchant cash advance, small business can get the working capital they need as the requirements for a merchant advance are different from a bank loan. Before determining what is best for your business, it’s important to know the differences.
With both a loan and a merchant cash advance, you are applying for money, but that is all they have in common.
One of the best advantages of a merchant cash advance is that you stand a better chance approval than you do with a bank loan.
A merchant advance is based on your future projected credit card processing volume. There are no set monthly payments, instead a percentage of your daily credit card transactions are deducted until your merchant cash advance is paid back.
With a merchant advance you typically get funds deposited to your bank account 72 hours after approval.
The main reason for a speedy approval process is because there is much less paperwork involved.
With a bank loan, you always need collateral such as real estate or investments. This isn’t necessary for a merchant cash advance.
You can utilize the money on whatever you wish.
With a merchant cash advance, you are not worried about a fixed payment schedule as there is none. The repayment is made through a percentage of your daily credit card sales. When you business is down you pay back less, when your business is up you pay back more, in this way a merchant cash advance works with your cash flow. Whereas, if you have a bank loan you are required to make the payment, and failure to do so invites penalty charges.
In tough economic times, bank financing is hard to obtain, however don’t give up just because you were turned down by a bank. Alternatives exist and Fast Merchant Advance is there to enable you realize your dreams.
For more information, or to speak with a representative about a Merchant Cash Advance for your Business please contact us at or Apply For a Merchant Cash Advance.