There are never-ending ways for you to obtain cash for your business. From bank loans to crowdfunding to various apps claiming to help you out, the options are increasing daily. While many businesses have success with these methods, they may not be the best choice for your small business, especially if your business is considered to be “high risk”. Instead of taking a loan with high interest rates and immediate payments, merchants should look into obtaining a merchant cash advance to help fund their company needs.
A merchant cash advance is not a loan. In fact, it is simply a sale, which is not reported on your credit report. The provider is purchasing into your company at a discount. Besides the fact that it is not a loan, there are many reasons to choose a merchant cash advance for your business funding needs. Merchants with FICO scores under 500 can be funded, and there are no tax returns or forms to submit at the end of the year. Also, with many merchant cash advance programs, such as the one provided by First American Merchant, you can be approved and receive funding within 72 hours. This is something that would never happen with a bank loan. If you are in need of extra cash down the road, you can request additional funding once you have repaid 50% of the original advance.
One reason many do not look into a merchant cash advance is that many providers require you to have a merchant account. With First American Merchant, you can instead obtain a “bank only” merchant cash advance, which approves the cash advanced based upon your business banking account. Funds are then removed from your business baking account at repayment time, instead of your merchant account. While a merchant account is great, not every business has one. Cash-only businesses typically do not, and this can leave them thinking that they are ineligible for a merchant cash advance. This is not the cash with First American Merchant. Be sure to make a merchant cash advance your go-to when you are in need of business funding.