You know that you need a small business loan, but you have two main problems with the traditional loan format. First, your business goes through cycles. You have slow periods right before business really picks up. During the slow periods, you can’t afford to pay the same amount on your business loan as you can pay during the rest of the year. However, traditional small business loans demand the same payment amount no matter how your business is doing. Second, you don’t have the credit or collateral that most banks demand for their business term loans. However, you do have steady debit and credit card sales no matter the season.
Does this situation sound familiar? Then you may need a merchant cash advance. Merchant cash advances have some similarities with term business loans. For example, you can use a merchant cash advance for all of the same things that you could use a term loan for. However, the difference is in the how you pay the money back. With a merchant cash advance, your payments come directly from your credit and debit card sales. Keep reading to get a closer look at how these loans work.
Compared to other loan types
|Loan types||Max Amounts||Rates||Speed|
|Merchant Cash Advance||$7.5k – $1m||Starting at 1.09||1-2 business days|
|SBA Loan||$50k-$10m||Starting at 5%||3-5 weeks|
|Business Term Loan||$10k to $5m||Starting at 5%||1-3 business days|
|Business Line of Credit||$10k to $250k||Starting at 8%||1-3 business days|
|Receivables/Invoice Factoring||$50k-$10m||Starting at 5.8%||1-2 weeks|
|Equipment Financing||Up to $5m per piece||Starting at 5%||3-10 business days|
|Revenue Based Business Loans||$10K – $5m||Starting at 9%||1-3 business days|
United Capital Source Can Help You Secure a Merchant Account Loan
Ready to start a partnership? Then talk to us about a merchant cash advance today. Please feel free to give us a call, shoot us an email, or start an online chat. Otherwise, you can start your online application today. We look forward to working with you!