Does your business need funds quickly? Are you wondering what a merchant loan has to offer? If you’re considering whether to apply for traditional lending or an alternative, the following list of merchant loan benefits will help you decide what is right for your business.
1. Get the Cash You Need Fast
With a traditional lender, you could wait weeks or even months to find out if you qualify for funding. By then, your business could miss a great opportunity, or worse, find itself in a bad cash flow situation. Before you even apply for a merchant loan, you can find out if you qualify. Because merchant loans have a much higher rate of approval, you have a very good chance of securing the cash you need. Approval is based on business performance rather than personal credit, time in business or financials. You can have your money in your bank in as little as 72 hours.
2. Free Up Time and Reduce Stress
Many business owners spend hours upon hours worrying over where to find money to cover expenses and payroll. Trying to find available capital to chase opportunities and replace equipment can also cause a lot of stress. Then there are the many hours spent running your business, guiding your team and planning for the future. The last thing you should be worrying about is finding a reliable source of funding. A merchant loan ensures your business has quick cash when it needs it most, so you can free up your valuable time. Worry less, and focus more on day-to-day tasks and business growth.
3. Better Manage Your Cash Flow
As they say, cash is king. Cash is needed to cover day-to-day expenses, payroll and other costs. When equipment needs to be purchased or replaced, you will need cash available. It also important to have keep a cushion of cash for unexpected expenses. A merchant loan helps you boost your business’ cash flow when you need it most, and maintain capital for unexpected costs or seasonal slumps.
4. Maintain Control of Your Cash
A lesser known fact when working with a traditional lender is that you do not have complete control of your cash. Banks have the right to control what you spend your money on. Because a cash advance is not a loan (it is a sale), you get to choose how you spend the cash you receive. You get to decide what your business does and doesn’t need.
5. Develop a Strong Relationship with Your Lender
Banks have a list of industries and business types they are simply unwilling to work with. Yes, credit scores play a part in their decision, but that’s not the only factor. Some industries are just “too risky” in their eyes for one reason or another (e.g. high chargeback rates) and they shy away. A merchant loan from an alternative lender, on the other hand, allows you to secure the services you need and build a relationship with your lender. If your business is high-risk, a high-risk provider – like First American Merchant – specializes in working with risky business types and tailor their services to meet their needs.
With First American Merchant, you can secure cash in just 72 hours. Payments are automatically held from your credit card transactions, making repayment a hassle-free process. There are also no fixed monthly payments. First American Merchant simply purchases your future sales at a discount and provides the cash you need. (Both parties agree to the amount of sales being purchased and for what discounted cost.)
If you’d like to learn more about a merchant loan, the process and if it’s right for your business, contact First American Merchant today to get started.Get Started Now