How a Merchant Cash Advance Helps Small Businesses
A merchant cash advance is an alternative to taking out a small business loan when you need capital on short notice. This business financing tool is available to businesses that make credit card or debit card sales; unlike a loan, your merchant cash advance is paid back daily through a percentage of your credit and debit card transactions until the total sum has been repaid.
Merchant cash advance deals can help your New York business in many ways, allowing you access to capital quickly because they require less paperwork than small business loans. Rather than looking at your assets, your lender will instead consider your daily credit and debit card sales to determine your eligibility for the advance. Because a merchant cash advance is an unsecured loan, no collateral is required and you will not lose business or personal assets if you can’t repay the loan. Finally, the repayment schedule for your merchant cash advance is variable and dependent on your sales, so repayments can be adjusted to accommodate a temporary drop in business.