5 Benefits of Merchant Cash Advance for Small Businesses

Merchant cash advance is a great alternative source of funding for small businesses. The financing option allows you to obtain funds with a low credit score. Moreover, unlike a traditional financial fund, there is no need for collateral to become eligible for the fund. Merchant cash advance is different from traditional loans in that the funding option represents sale of a portion of a future credit sales to a financing company.

Small business owners that are unable to obtain funds through traditional financing avenues can greatly benefit from the merchant cash advance program. The financing option can translate into a timely and much needed injection of cash into the business.


1. High Chances of Approval

Traditional financing sources such as credit unions and banks are notorious in being tight fisted when it comes to offering loans to the individuals and small business owners. Applicants are required to have a high credit score as well as offer collateral for the loan. This is not the case with merchant cash advance program. As a result, the chances of approval for merchant cash advance are higher as compared to traditional loans.

2. Quick Approval Process

Merchant cash advance does not only have a high approval rate, but the process is quick as well. You do not have to go through a lengthy approval process to obtain the fund. If you are eligible, you can obtain the fund within just two days of making the fund application.

3. Low Cost Funds

Another great benefit of merchant cash advance program is low cost. Unlike other traditional financing options, the merchant cash advance option involves no upfront costs and application fees. The lending company only acquires ownership of a portion of expected sales of the company. The affordability makes it easier for the financing company to remain viable while repaying the cash advance.

4. Freedom of Fund Usage

Another benefit of obtaining funds through a merchant cash advance program is that company has freedom to utilize the funds as per the requirements. You will have greater flexibility and control over the use of the funds.

5. Minimum Chance of a Default

The most important benefit of a merchant cash advance program for small businesses is that there is a minimum chance of becoming a default. The repayment of the cash advance is linked to future revenues of the business. The lender collects a portion of the future revenues of the business. There is minimum risk of default of the loans, which also helps in improving the credit score of the company.

Merchant cash advance program can be a valuable financing source for small businesses. If you want to know more about the program, you can call us at 888-745-1114 or email us to get in touch with one of our professional experts.