All businesses can use a cash reserve for when sales are down, or for when a catastrophe arises. For struggling businesses, the thought of having rainy day funds is laughable. When it is hard enough to float your business on a day-to-day basis, why even think about having cash in a separate fund? Well, a safety net can help every business, and it can be easier than you think to obtain the funds needed.
Usually when a merchant needs a loan, they turn to a bank. A bank loan is the worst idea for a business – especially if that business is struggling. The high interest rates and effects on your personal credit can become debilitation for many merchants. The payment schedule is equally terrible for merchants, and even if you are in business debt up to your eyeballs, you still must pay back the loan on time every month. Thankfully, there are better options.
For an emergency and a rainy day fund alike, a merchant cash advance is often the best option for merchants. A merchant cash advance is not a loan; in fact, it is an advancement on your business. You are given a lump sum of cash in exchange for future sales. These sales are set in a percentage that is decided on between you and your merchant account provider. With a merchant cash advance, there is no due date, and no fixed payment schedule. When you make sales, you pay. When you do not, no payments are made. It’s as simple as that.
Merchants who have a previous bankruptcy or bad credit need not worry, because merchant cash advances are given based upon your business performance. The approval process is also fast – most merchants are approved within 72 hours! Compare that to weeks that it takes a business loan approval at many banks. There is no comparison. For businesses big and small, the best option for extra cash is the merchant cash advance. Contact your merchant account provider today to discuss your options.