Being able to get financed whenever you need money is a vital part of being a successful business owner. If you have bad credit, however, you may think that you stand little chance of getting cash from an outside lender. Rather than let bad credit jeopardize your entrepreneurial success, you can get the cash you need and continue to focus on running your business by taking advantage of these benefits that come with a merchant cash advance.
Easy Application Process
When you apply for a loan at a bank, you typically have to fill out a lengthy paper or online application. You then must wait while the loan officer scrutinizes every minute detail of your credit and your business.
The application process for a merchant cash advance proves to be much simpler. Most MCA lenders check your bank statements and your credit card sales to ensure that you can pay back the loan. You avoid the embarrassing examination that comes when you try to get a loan from a bank.
No Limits on Use of Money
Bank loan officers typically want to know for what purposes you plan to use the money if you are approved for financing. If you use the money for anything other than the stated purpose, the bank could renege on its agreement to finance your business.
However, when you use a merchant cash advance, you have few limitations, if any, on how you can use the cash. You could use the money to:
- Make payroll
- Buy inventory
- Pay utility bills
- Expand your client base and brand
You do not have to account for how and when the money is spent as long as you continue to make payments and uphold your other contractual terms with the MCA lender.
No Minimum Monthly Payment
An MCA is structured to be affordable for you to pay back. If you experience slow months, your payments will match the amount of credit card sales you have coming into your business.
You are not bound by a minimum monthly payment as you would be if you were to utilize a loan from a bank. This flexibility lets you continue to bring a profit without being compromised by a payment that you may not be able to afford.
More Time to Pay Back in Full
Traditional lenders typically give you up to six months or a year to pay back your loan. This time constraint puts stress on you to meet the obligation or risk having your business assets seized by the bank.
A merchant cash advance, however, spaces out the payments and gives you more time to pay back the loan in full. The lender will continue to take a portion of your credit card sales until the obligation is satisfied.
It can take days, if not a week or more, to be approved for a loan from a traditional lender. During the time it takes to be approved, you must worry about whether or not you will be able to get the money you need to run your business.
A merchant cash advance typically only takes a day or two to approve in most cases. This shortened approval time lets you avoid the stress and worry that comes when you need money. You also can focus on running your business without fearing that you will have to make cuts out of your operational budget.
Bad credit does not have to be the hurdle that stops your business in its track. You can get the financing you need today and avoid the complications of applying and being approved for needed cash by taking advantage of these merchant cash advance benefits.