Tax season is here, and for many merchants it means the tax man cometh. The need for fast cash can put a merchant in a bind, sometimes making risky decisions. From high interest loans and cash advances, to title pawns and other risky methods of obtaining funds, there are as many bad ideas as there are merchants it seems. Luckily a good solution is only as far away as your merchant account processor.
A small business cash advance is the best solution for a cash bind. Whether it is typical business issues or tax issues, a cash advance can help you without the high interest fees. With a cash advance, the approval rating is high because it is based on your company’s performance. Every merchant has its own criteria that merchants must meet, but it typically requires a certain minimum cash flow as well as a chargeback limit. Without a need for a credit check, the majority of merchant who are in need of this service can obtain it.
Another plus about a cash advance is the payment schedule. With a regular loan, you must repay in large sums monthly. This occurs whether you are making cash or not. With a cash advance, your payments are deducted from your merchant account daily, in small percentages that are agreed upon by you and the processor. If your business is closed, no payment comes out. So, you only pay when you make a profit. This is the only fair way of borrowing funds in today’s risky market, yet it is not utilized by many merchants.
Merchants should research their options. While the best option for most is the cash advance from their merchant account processor, others may find that they like the old-school stability of a loan. That’s okay, especially if you are set to quickly rebound and have a great credit score. However, this is not a likely scenario for most merchants in need of a cash advance, so be sure to research your options, regardless of which method you prefer.