Get a cash advance against sales is a merchant‘s best strategy for funding growth and solving problems, in at least some situations. All businesses encounter problems and opportunities where cash on hand, existing credit and conventional financing tools are not adequate.
When to Get a Cash Advance Against Merchant Sales:
A cash advance can prove useful in several cases. Loans are hard to get for new businesses that don’t have a track record. Most lenders will only do secured loans anyway. A business owner without substantial assets will not have much to offer by way of collateral. Merchant cash advance vendors don’t require a great credit history or collateral.
Emergencies sometimes arise. The classic case is when a business suffers losses from a natural disaster. The insurance money, such as it is, might take a few weeks to arrive. Many small businesses can’t get loans sufficient to cover the costs. Even if available, a loan will take more time to process. A cash advance can be available in less than 10 days after putting in an application.
Business opportunities arise all of the time. A strategic partnership, a special event, or a hot item all present opportunities to make lots of extra money. Businesses sometimes need quick access to extra cash to take advantage of those sorts of opportunities. These opportunities might be missed without using a cash advance against the merchant’s sales.
A small business owner might sell some credit card receipts in exchange for the cash needed to set up a kiosk near a huge cultural event, to sell themed merchandise. A store that sells Washington, DC merchandise might get an advance to set up a booth near the National Mall the week of July 4.
Use a Cash Advance Wisely:
As with any financial tool, cash advances have to be used wisely. The premiums and broker fees can push the cost of an advance to a level where it just does not make sense. Going to a direct lender can make cut out the cost of an advance a little.
Once a business owner determines that getting a cash advance makes sense, a few simple steps can minimize the risk of having a bad experience:
- Work with a direct cash advance provider in preference to using a broker.
- Look for a vendor with experience in your industry.
- Make sure all of the fees and terms are clear up front.
- Be ready to negotiate if the terms or costs are not entirely suitable.
Smart selection of a vendor will avoid problems and yield quick cash to meet emergency needs or to act on business opportunities.
Merchant Cash Advances are a Business Tool:
Getting a cash advance needs to be treated like any other business decision – the costs and benefits need to be weighed against the alternatives. A little planning and research will ensure that a business owner gets the money they need under favorable terms. Doing nothing needs to be one of the alternatives. A cash advance against merchant sales can be the best solution.