Business

Many business owners find themselves in need of a short-term loan to cover expenses or to help fund growth. Business owners who are looking for a short-term loan can receive one from merchant cash advance lenders in as little as one day.

Why Merchants Choose to Apply for a Merchant Cash Advance Loan
When many people think of business loans, they think of banks. Banks are one of the largest lenders to businesses, but it can be difficult for a business to receive a bank loan. The credit history of business owners, the amount of risk of a business, and the business plan are all taken into account by banks in determining if an applicant should be given a loan.

Some merchants who find themselves unable to receive a bank loan or who simply want a quick loan often look towards merchant cash advance companies, because they generally have less stringent requirements than banks and also a simpler process.

A merchant cash advance can generally be received faster than a bank loan, because cash advance businesses do not require merchants submit business plans that will need to be reviewed, and cash advances are given on the amount of credit card sales a merchant has.

A cash advance for businesses does not show up on a merchant’s credit report and will not affect their ability to gain funding from other sources. Also, cash advance lenders generally do not require assets be used as collateral.

What a Merchant Needs to Apply for a Business Cash Advance
Although merchant loans have fewer requirements than banks, they still have a significant amount of requirements that must be met before a business can receive a merchant account cash advance.

Most places that offer a cash advance for small business owners will want to have information that shows that the business owner is capable of paying back the loan amount. Six months of business statements and two to six months of bank statements are generally required for business cash advance companies to determine how much a business typically makes. Most importantly, business owners will need to bring their most recent credit card sales statements.

How the Process Works
Once the merchant cash advance business has received an application and all necessary documentation, it will go over the documents and decide if it will give the business a loan.

Business cash advance lenders are generally more concerned with the current finances of a business than the history of the business, so credit history will not be a large determining factor when a cash advance business is deciding to grant a loan. Cash advance lenders also tend not to care about the future plans of a business and how they plan to use their advance.

A small business cash advance is normally granted on the strength of the credit card sales of a business. A business cash advance loan can range from $2000 to $250,000. Businesses are normally not required to pay a cash advance back in predetermined monthly installments, but they are expected to pay the advance in portions when they receive the money from their customers in credit card sales.