Why a Merchant Cash Advance is Better than a Business Loan

There are many funding options available for small business owners like you. You may be thinking of a business line of credit or even a business loan.

Another, newer option is the merchant cash advance (MCA). This option is quickly gaining traction with business owners. Why? MCAs are often better than business loans.

A Merchant Cash Advance Fits Your Needs

Business loans are traditionally for large business purchases. Some lenders may not offer business loans unless they’re a certain size, such as $100,000 or more. If you need less than that, you may not be able to qualify for a loan.

A merchant cash advance is different. It can be as big or as small as you need, giving your business more flexibility when it comes to funding. If you just need a little bit of cash to stay afloat, an MCA could be a great option.

MCAs Are Flexible

A merchant cash advance may also be the right choice because it’s flexible in terms of payment. MCAs are assessed on your future sales.

The lender will look at your past sales and estimated future sales. They’ll then offer you a percentage of those sales as an advance on them.

As you make sales, you pay back your advance. If your sales are higher, you can pay the advance off more quickly. If your sales are lower, then you don’t need to struggle to meet a certain minimum payment.

This makes a merchant cash advance much easier for business owners like you to manage.

They’re Great for Startups

Many lenders require an extensive business history before they’ll extend a formal business loan. They want to see past proof of success.

A merchant cash advance looks to the future, not the past. Even if you’ve only been in business a couple of months, you may be able to qualify for an advance.

If you’re thinking about the future of your business funding, then it’s time to consider a merchant cash advance.