4 Benefits Of Merchant Cash Advances


By Catherine Way

Small business owners are always looking for new and exciting ways to grow their businesses.

Staying on top of the latest trends, the top of the line software and technologies, or marketing ideas, is the only way to grow and expand your business, or get left behind.

For those that want to jump on new opportunities have access to fast funding is key!

Many small business owners are wary of merchant cash advances, due to higher interest rates, and unclear funding and approval processes.

“Merchant Cash Advances are perfect for small business owners that need fast funding without the hassle of a bank loan. Merchant Cash Advances are asset-based loans that are perfect for small business that wants to use their future sales today.” – Loren Howard, Prime Plus Mortgages, Arizona Hard Money Loans. 

Merchant cash advances do offer benefits to small business owners that cannot get traditional loans for their businesses.

No Credit Checks

Most banks and credit unions require good or excellent credit scores in order to fund any small business loans, and for those that have scores under 700, getting a traditional loan for your business can seem impossible.

With a merchant cash advance bad credit won’t get in the way of whether you can get an advance, which is a big benefit for many small business owners.

Unlike banks and credit unions, merchant cash advances do not require a credit check in order to apply!

A merchant cash advance is an advance on the credit card sales of your small business. That means that you can get an upfront sum of cash in exchange for a slice of your future credit and debit card sales. There are no credit checks as it is based on the capital of your business, unlike traditional loans that are based on your credit or personal assets.

Merchant cash advances aren’t your standard small business loan, so you don’t have to offer collateral or your credit history in exchange for the loan.

While raising your credit score can take time, with a merchant cash advance you can fund your business quickly.

There’s no risk to your personal assets, you simply use a small portion of your future sales to secure the cash you need today!

This is perfect for small business owners who have bad credit, as they can get approved for a loan quickly and a less.

Small business owners looking to get a loan fast without the hassle love that merchant cash advances don’t need their credit scores in order to fund their businesses.


Fast Funding

Only 1 in 5 small businesses get approved for business loans.

For small businesses in need of cash now, waiting 2-3 weeks is just out of the question.

Merchant Cash Advances makes it easy to get the funding you need, with funding in as little as 24 hours. Traditional loans can take anywhere between 2-3 weeks to approve to small business due to credit checks. Merchant cash advances can fund small business within 2-3 days at most.

That means that with a merchant cash advance you can be approved the same day, and not waiting to jump on new opportunities.

It also means that for small business owners, such as construction companies or retail stores, you can have cash in hand to fund business ventures quickly, such as restocking or purchasing new equipment. There are many costs for small business owners, and being able to cover these costs quickly can be a lifesaver.

Fast funding is essential for small businesses to take on new opportunities to build your business.

Industry Funding

In their first year, 30% of small businesses may fail or change ownership, according to a study conducted by Cornell University.

Many restaurants find it hard to fund their business, and getting someone to ever look at their business may be a struggle. Meeting with banks can be very time consuming, and chances are, might get your business funded.

Thankfully, Merchant cash advances make funding a business in many niche industries easy.

Medical offices may have to wait for payments for insurance companies, auto shops need to restock parts, and retail stores and salons need to stay on top of trends in order to keep their doors open.

All of these businesses need working capital in order to stay and business, and a merchant cash advance makes funding their business easy.

With proof of sales, you can be funded for your business now, and use your future revenue now!

Easy Ways To Pay

Merchant Cash Advances are easy to pay. Depending on your merchant cash lender, you could make daily, weekly, or monthly payments.

Unlike traditional loans which are a flat monthly fee, a merchant cash advance loan is based on a percentage of your debit and credit transactions.

Which means how much you pay varies on how much you made!

If you have a great month and have lots of revenue you can pay off a large sum of your loan, and if you had a bad month, they will only take a small percentage which won’t impact how you do business.

Depending on your lender, they can even set daily auto-payments, which will pay off your loan faster than ever!

This calculator makes it easy to determine what type of small business loan would be best for your business.


Merchant Cash Advances are great for small businesses who need cash in order to restock, buy new software and technology, and any other plethora of situations small businesses face.

While there are many different types of small business loans, determining the best loan for your business can be tricky.

There are many benefits for using a merchant cash advance for your small business, but most small businesses love these 4 perks:

  1. Fast Funding: Merchant cash advances can fund in as little as 24 hours, much better than the 2-3 week waiting period from most banks.
  2. No Credit Checks: You don’t need a perfect credit score in order to get a loan for your small business, and a merchant cash advance only uses your business revenue to fund your loan!
  3. Industry Funding: Merchant cash advances understand the nuances of different industries, so you can get fast funding for your niche business easily.
  4. Easy Way To Pay: Daily, Weekly, And Monthly auto-payments are available! Merchant cash advances can be much more flexible than a traditional loan.

Have You ever used a merchant cash advance?

This Article Was Originally Published In Payments Journal.

Published by

Michael Frank Hoffmann

Michael Frank Hoffmann is an Independent Agent with David Allen Capital. Based in Chicago, Michael Frank serves the needs of small business owners throughout the United States. prides himself on providing a personal touch to his clients. While most lending institutions see you as another file, he takes a more hands on approach with you. While most funding organizations work a 9-5 business day, Michael Frank works round the clock to accommodate his clients needs. If you are a small business owner and you need working capital, Michael Frank can be reached at 708.292.8866.

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