Businesses Turn to Merchant Cash Advances as Business Loan Alternatives

Written by admin on April 8th, 2011

Even as the economy begins to turn around, banks remain hesitant to extend credit to small businesses.  After a lengthy application process and rigorous audit of the business’s financial documents, many business owners are coming up short in finding the capital they need to grow their business.  Without stellar credit and healthy financials, your chances of getting access to capital from traditional funding sources are slim.

Many retail business and restaurant owners have turned to the business cash advance as an alternative.  The cost of the funds is typically higher than what banks would charge, but it comes with certain benefits:

– The application process is very simple.  There is minimal paperwork required.  Pre-approvals can be provided within 24 hours, and funding often takes place within 5 – 7 business days.

– Approval rates for qualified applicants are as high as 90%.

– Good personal and business credit isn’t required.

– There is no  need to pledge any assets or collateral (business or personal) in order to secure funding.

– The methods by which advances are paid back make repayment very flexible.  A percentage of the business’s future credit card sales, typically between 10% and 20%) are withheld by the merchants credit card processor and applied towards the balance of the advance.  A slow month in credit card sales results in a lower amount paid back towards the advance.  This makes it easier to cope if business slows down a bit.

– Businesses typically qualify to receive an additional advance before the first advance is entirely paid off.  This varies case by case, but once the balance is down to about 50%, many merchants qualify for additional funds.

There are many merchant cash advance providers out there.  Each has their own strengths and weaknesses.  Companies like Sure Payment Solutions are able to find the right match for each business based on each owner’s particular situation and needs.  Visit to learn more.


Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Leave a Reply