Is a Business Cash Advance Right for You?
A business cash advance, or merchant cash advance, is basically a short-term loan often with a higher interest rate and is advantageous for those who need fast approval and funding ASAP, often for a time period less than one year. Some cash advance loans are available through credit cards, but we all know those interest rates are some of the highest around. Learn more about cash advances here.
So, is a merchant cash advance right for your business?
Here are 4 reasons why this type of loan could (or may not) work for your particular business.
Many sales are completed with credit card
Since merchant cash advances are paid back based on credit card sales, if your business uses more checks or cash, something like a working capital loan or line of credit may suit you better.
Your business’s credit history is not the best
Many business owners don’t have the credit ratings that banks would like to see. This is where a merchant cash advance comes in handy. Lenders use other methods to check creditworthiness, and even with a bankruptcy in your history (as long as it is fully discharged), you can apply without an issue.
You’ve been in business for less than two years
Most banks like to see a credit history of at least two years before they begin to even consider you for a loan. With a merchant cash advance, having a history of less than this is acceptable to be approved.
You need cash ASAP
One great benefit to this type of loan and a major reason people use them is simply the quick access to cash. WCM can provide a merchant cash advance of up to $2 million in a matter of days, with flexible payback options. Fill out our simple application to see if your business qualifies.
WCM is a cash advance lender ready to serve the financing needs of your small business. Contact us today and let’s take your business to the next level!