Today we’re getting back to basics and looking at the merchant cash advance product and how it could benefit your business.
The last decade has seen various new finance products arrive on the market to challenge the traditional bank loan, and the merchant cash advance has proven to be one of the most successful in doing so.
If you are still unsure about how a merchant cash advance works and how it could benefit your business, take a look at the five points below:
1. Cash Flow
A merchant cash advance can be a fantastic way to keep your cash flow healthy. Many businesses suffer from unexpected expenses that can set them back several months. An MCA can be topped up regularly, ensuring you have access to funds as and when you require them.
The flexibility of a merchant cash advance is one of the many reasons why it’s a great solution for businesses of all types. Providing you own a PDQ card terminal and accept regular payments through it, you may be considered for this product. Have a chat with one of our team members to see how it could help you.
A merchant cash advance lender will advance you funds based primarily on the volume of your monthly card sales. Because of this, your monthly repayment amount will depend on your previous month’s card transactions. So, if you’re having a slower month than usual, your repayments will reduce. Likewise, when you’re having a better month, the repayments will increase and you’ll pay off the loan off quicker.
Whatever your reasons are for needing finance, lenders will try their best to fund you as quickly as possible. They understand that you may need access to cash quickly to take advantage of a new opportunity, build an extension or perhaps purchase new equipment. The application for a merchant cash advance is generally much quicker than that of a standard bank loan.
5. Loans For Any purpose
Whatever your reasons are for requesting finance, a merchant cash advance lender will take them into consideration. If you’re looking to build an extension, purchase some new equipment or completely redecorate, talk to one of our lenders and they will be more than happy to help.