Give us a call for more info 1-800-210-5649
Skip to content

Merchant Cash Advance Vs. Business Loan

bank-loansBeing a small business, the initial need for funding is crucial to future growth and success. As an owner of one, you have a choice between two different means of getting access to the funds – merchant cash advance and a business loan. At times, people confuse between the two, or even use them interchangeably. It is important to note that these two are NOT the same thing.

A business loan is a simple loan where by you get access to a sum of money, which you either have to pay back in installments or through a one-off payment in the future. In the meanwhile, you are required to pay installments until the loan is repaid.

Merchant cash advance is rather different. When you take up such a cash advance, you are not actually lending money, but selling your future sales at a discount. How? By taking up an amount as an ‘advance,’ what you do is give the merchant services provider the right to take a percentage of your future sales.

So once you have taken a merchant cash advance, the repayments won’t be at a certain time, but made continually from your credit card sales. What this entails is that a cash advance, unlike regular loans, does not have a specific period. Sales fluctuate, and so does the repayments, leading to a situation where the time period is indefinite.

While business loans tend to have slightly lower interest rates, there are credit rating requirements which not every business can stand up to. So if you are having trouble getting access to a business loan, the next best option is a merchant cash advance. And, what better place to get it from than First American Merchant?

At First American Merchant, we offer you cash advances that come to you unconditionally. We don’t ask you to wait in uncertainty, nor put you through arduous processes. We don’t even ask you to have a merchant account with us. If you are a business in need of a working capital injection, you could not have been at a better place.

 Get Started Today!