Irrespective of the industry and nature, there’s one rule that applies to all small and medium businesses — cash is the lifeline of the business. While banks offer business loans, not all businesses are eligible. In fact, if you are a newer and younger venture, then you may find that banks are not willing to lend you a helping hand.
Luckily, there are alternative ways to get your required capital — and, Merchant Cash Advance or MCA is one. Applying for a merchant cash advance at digital lending platforms is a quick and hassle-free way to receive the requisite funding for your business.
Here, in today’s post, you can check out the top benefits of obtaining a merchant cash advance, and find out why it may be the financing option for your business requirements.
The Top 5 Advantages of Merchant Cash Advance
1. Resolve Short Term Cash Flow Problems
As a small business owner, you are very well aware that cash-flow problems are one of the main reasons holding back your business growth and expansion. Cash-flow problems may arise because of several reasons like — a client who pays late perennially, need to front capital to stock up your inventory.
This is where — merchant cash advance can come in quite handy. Unlike other financing product, the MCA isn’t technically a loan. Here, you borrow money from a lender and repay the lender when you receive money from your clients or other sources.
2. Avoid Missing Out On Work, Due to Lack of Capital
Very often, small businesses fall into the trap of turning away clients, because they don’t have the required capital to sign up new projects. For instance, let’s assume that a major client wants to hire you for a huge project — one, that is likely to run for months. But, the catch is that the client will make the payment only on completion of the project.
As a small business, you may not have the capital to hire and keep staff working for months on this project, until the client pays. When you miss such opportunities, you can be sure that the client goes to your direct competitors.
When you avail merchant cash advance, it helps you to avoid missing work, thereby helping your business grow bigger.
3. Simple Application Process
Applying for a merchant cash advance at digital lending platforms like Indifi is quick, easy and hassle-free. All you have to do is fill out an online application form specifying key details about your business, and the approval process is completed within a couple of working days (or just a few hours).
The simple application process means your valuable time could be spent on your core business practices and not waiting for hours at a lender’s office.
4. Quick Access to Funds
Once your application is approved, you can receive the funds in your bank account directly, within a few hours. You can then use this amount to breathe life into your cash flow problems.
There’s no restriction on the usage of funds. Fund new marketing campaigns, upgrade your equipment, improve your inventory, give your office space a facelift or settle outstanding payments — the choice is all yours.
5. Get Funds Even with Poor Credit Ratings
Upcoming businesses find it extremely challenging to get a business loan since their credit ratings are low and they don’t have the required credentials to prove their creditworthiness. Fortunately for you, merchant cash advances don’t focus on your credit history. The approval ratings for a merchant cash advance are high since the repayment is directly from the swipe machine transactions at your business.
Hence, a merchant cash advance is a great funding method for business owners, who are looking for alternative funding to regular term loans.
Take the Stress out of Daily Business Operations with a Merchant Cash Advance
There’s no denying the fact that owning and running a business is extremely rewarding. Yet, it comes with a ton of stress — responsibilities and operational problems, especially when you are running low on cash. With a merchant cash advance, you can ease some of the pressures from your business, thereby taking a huge load off your back.
Once you get the confidence that your funding needs are taken care of, it helps you focus your full efforts on growing and developing your business. With financial worries out of the picture, you will start falling in love with your business, all over again.
Reach out to the best digital lenders and secure a merchant cash advance and help your business grow and expand.