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A Small Business Owner’s Guide to Merchant Cash Brokers

It might come as a shock to hear, but most business owners who get a merchant cash advance often don’t use the internet to secure one. In fact, they might not even be actively seeking one out. A smiling salesperson walks through their doors and shares information on the product and its benefits. 

The pitch usually involves a friendly approach of the broker saying they’re there to help the business get some cash with flexible terms. They are able to quickly break down the ins and outs of how the advances and weekly repayments will work. For many businesses, the broker becomes much more than just a salesperson – they become a supportive individual that wants to see your business succeed. A friend. 

What are Merchant Cash Advance Brokers?

A merchant cash advance broker is someone who connects businesses that need financing with a funding company that can provide them with the money they need for growth. These individuals are typically paid on a commission basis. Ideally, they should help you partner with a provider that understands the ins and outs of your business type and industry. If you decide to use a broker, it can be helpful to choose one that a colleague or trusted friend recommends. 

What is a Merchant Cash Advance?

A merchant cash advance (MCA) is a form of online lending that allows businesses to opt for an alternative financing option separate from traditional bank loans. There are several different reasons why a small business might want to use an MCA. A cash advance can help businesses fill gaps in cash flow and cover unexpected expenses. It can also help companies tide over seasonal fluctuations and buy inventory. 

This type of funding is very appealing because of its quick, hassle-free process. Startups are also among the business owners that prefer this option. You can easily secure an MCA with little to no credit history and no collateral to offer. High-risk businesses that struggle to secure traditional forms of funding can also get a merchant cash advance since MCA requirements are not complicated.

Other advantages of MCAs include:

  • Speedy application process
  • Uncomplicated paperwork
  • Flexible repayment process (payments amounts may drop if the amount of sales transactions dips)
  • Freedom to use the funds as needed and desired

In short, if a merchant cash advance broker wanders into your store one day, it’s definitely worth the time and conversation to hear what they have to offer. The funds a merchant cash advance broker can help you secure could be the answer to the cash flow needs you’ve been searching for. Just make sure that you are choosing a reputable company you can trust with years of experience in offering this product.