Sometimes the best way to grow your company is through non-traditional funding methods such as a merchant cash advance. An MCA is an advance of a percentage of your credit card receivables and can help you get the money you need for your company now while paying it off a bit at a time later. This funding method doesn’t usually require a credit check and can be quicker to secure than a traditional loan.
How an Advance Can Help You Grow
Business opportunities, especially those for the growth of your company, don’t necessarily arrive on your doorstep when you have the means to expand. Securing new properties, equipment and personnel can take funding that you simply cannot wait for with traditional funding. For instance, if your ideal business location becomes available for purchase or rent, an MCA can help you secure that space before a bank loan could even be approved.
Timing can mean the difference between getting the right new space or equipment to help your business succeed and staying in the red for months at end. No matter what your financial goals for your business are, having access to financing such as merchant cash advances can give you the flexibility to meet them.
Where To Get an Advance
When you are looking for an MCA, it is a good idea to determine which lenders have the best reputation as well as which ones fit your needs. Some companies specialize in this type of funding and others offer factoring as well. The more research you do into the terms offered by different companies, the better deal you will get for your business. Most merchant cash advances will come from facilities designed to help process your credit card receivables and the application process is usually done online. Because of the flexibility of this financing options, you can use it when needed and not have to sign a long-term contract if you don’t want to.
Using an MCA facility to help grow your business can help you avoid many of the pitfalls involved in more traditional financing such as credit checks and the length of time to get approved. This is because a merchant cash advance is a type of factoring where you are selling a portion of future credit card sales in exchange for funding now. There is nothing to pay back and no creditors to pitch projects to, instead, there will be a speculation of your previous sales before a deal is struck. This can give you the financial flexibility you need to take on that next project or to get into a more permanent brick-and-mortar store.