Small businesses sometimes need financial assistance that it’s hard to obtain through traditional arrangements. If you’re the owner of one of these businesses, you’ve probably already realized that loans are not only difficult to qualify for, but offer terms and conditions which are not amenable to the development of a business that’s still attempting to find its niche and stable footing in the industry to which it caters. However, there are still options which serve to help businesses everywhere grow and thrive in the beginning stages. Merchant cash advances are the perfect option for the owner of a small business looking for a flexible and manageable payment schedule and easy qualifications.
One of the main advantages small businesses experience when applying for a merchant cash advance is the ease of qualifying. Because this arrangement is considered relatively risk-free for the merchant who’s loaning the cash, their qualifications can be minimal, cutting back on the time required to investigate the worthiness of the applying party. This ensures that the small business owner can have the needed cash in hand as soon as possible so that they don’t miss out on opportunities such as expansion or other important developmental steps.
Furthermore, this financial arrangement offers small businesses a unique payment plan that minimalizes the impact on the existing working capital as well as the profits which operations produce. Instead of requiring hefty monthly payments, merchant cash advances simply claim a certain percentage of all debit and credit transactions completed by the business in question on a daily basis. The percentage of the funds to be withheld is something which the owner will discuss with the merchant when setting up the terms of the loan, but they are typically small enough to avoid interfering with the funds needed to maintain the everyday operations of the establishment. Furthermore, since the plan only takes a certain percentage of the credit and debit transactions and not a specific amount of funds, owners need not worry about how a slow day will impact the financial situation of their business concerning this financial arrangement.
Merchant cash advances have a great deal of benefits to offer small businesses of all types, many of them catering specifically to the needs which are unique to a business in its early stages of development. While this is a great option for many, speaking with a professional about options prior to signing on board can help to ensure that this is the best option for a business’s financial future.