A merchant cash advance is the best option when you need a quick access to the cash. Its hassle free and you don’t need to scrounge upon the detailed documents. This business cash advance loan is given even if you don’t have a stellar credit score, collateral to bank upon and good financial history. This cash advance loan is different from the traditional bank loan. Approvals are made fast within a day or two.
How does a merchant cash advance loan works?
This type of cash advance loan is generally approved or funded within 48 hours of the business day. You can repay the debt in the future. A factor rate is applied to your credit card sales to find out how much is taken from the sale. This rate is then multiplied by the loan amount.
Here are some reasons why you need to take a cash advance loan:
To buy a plant and equipment– at some point of time, it becomes necessary to buy or replace an equipment, hence cash advance loan becomes necessary. Whether you need a telephone, computer, vehicles, machinery or any other kind of equipment, a merchant cash advance loan becomes necessary.
To maintain stock level– Making sure about your inventory levels is important. There’s no point in opening a shop if you don’t have sufficient inventory to back up. To maintain minimum stock level, cash advance loan is important.
To cope up with the emergency situations– Emergency can happen any time in the world of business. In fact, it’s rare for the business to move smoothly. Production failure, theft, slow sales, natural disaster can happen anytime, causing unexpected losses. If you don’t have an adequate amount for the rainy day, a business cash advance loan can help you out.
To meet the tax obligations– Yes! With the help of merchant cash advance loan you can fulfill your tax obligations.