855.933.8638 (WE-FUND-U) business financing chat for small business loans Call us about business loans

How Merchant Cash Advances Can Help Your Cash Flow

  • home
  • Blog
  • How Merchant Cash Advances Can Help Your Cash Flow
By Jared Weitz Posted Wednesday 15, 2017 In Funding, Small Business Loans

How Merchant Cash Advances Can Help Your Cash Flow https://www.unitedcapitalsource.com/blog/how-merchant-cash-advances-can-help-your-cash-flow @ucssource

Here at United Capital Source, we work with all kinds of small business owners in all types of industries. One of the most common reasons they come to us for lending help is inadequate cash flow. They’ve made the right call coming to us, though. Because small business loans such as a merchant cash advance can relieve the stress of cash problems – the financial stress and the personal stress.

Business writers like to say that cash flow is the life blood of your small business. And that’s true. It takes money to start a business and keep it running. It takes more money to promote your business and get the tools and supplies you need to serve customers. That’s the only way to increase sales and continue to grow. Unfortunately there’s one big difference between the life blood in your body and the revenue in your business. Real blood flows continuously and consistently. Cash does not.

It’s a problem. Quickbooks says, “Trying to run a business without managing your cash flow is like trying to paddle a boat without an oar.” A Merchant Cash Advance can be a valuable tool to better manage your cash flow.

WHAT’S SO GREAT ABOUT MERCHANT CASH ADVANCE?

Business.com explains: “A merchant cash advance loan is a quick source of short-term financing for a small business merchant with an immediate need for cash. Most advances – plus fees – are repaid within six to 12 months. The primary requirement is that you must make daily credit card transactions.”

Many types of small businesses take credit cards, from individual consumers as well as business customers. That makes merchant cash advance a versatile option when you need small business loans. Getting an MCA can be a cost-effective tool to grow your auto shop. Or your restaurant or retail store. Or your dental practice. You get the idea.

You could apply for a traditional bank loan when you need working capital. But there’s nothing nimble about the conventional lending process. It’s slow and cumbersome. If you need money quickly, it’s not a viable solution. On the other hand, merchant cash advance offers exactly the financial agility you need:

  • You can apply in minutes using our United Capital Source easy online form.
  • You’ll hear about your approval within 24 hours.
  • You can have cash in hand in about 72 hours. How much you can borrow depends on how much credit card business you do.
  • You won’t have to put up collateral. Or a personal guarantee.
  • And bad credit is not a barrier. A lot of small businesses have less-than-great credit. Your business credit might be just plain bad. That can be a tall hurdle when you need working capital. You may be turned down by other types of lenders. But you 5can still get a merchant cash advance in spite of your bad credit.

When you get a merchant cash advance, you won’t have monthly payments. Instead, repayment is automatic. The lender takes their cut off the top, before credit card deposits even hit your bank account. It’s simple. No paperwork. No OOPS, I forgot to pay that! It’s affordable because repayment is a fixed percentage, not a fixed dollar amount. When credit card sales are high, you repay more. When they’re lower, you repay less.

This affordability factor can be especially valuable for businesses with bad credit. It’s not possible to make “late” payments. You’re borrowing responsibly. And that helps repair your business credit score.

WHAT CAN MERCHANT CASH ADVANCES DO FOR YOU?

Because your business makes credit card transactions on a regular basis, a merchant cash advance is always a ready option when you need small business loans. You can use the money for any business purpose.

Fill a gap quickly

What if you have an unexpected shortfall, or an emergency expense? Merchant cash advances can give you the funds you need to keep paying your bills on time. And paying your people on time. You can get the funds to handle repairs or replace broken equipment. Whatever the problem, you can fix it quickly. That way you can maintain business as usual, without damaging your reputation with employees, suppliers or customers.

Fill a predictable gap

Seasonal sales and long business cycles guarantee uneven cash flow. There’s too much time between when you spend and when you earn. Or when you work and when you get paid. That plays havoc with daily operations as well as long-term planning. Smoothing your cash flow with small business loans such as merchant cash advance allows you to be more purposeful in running your business. More strategic.

Capture opportunities

Sometimes the unexpected is welcome. You just learned about a new construction project you want to bid. Or you just landed a big new catering job. Or your supplier is offering a special “buy now” discount on some of your most popular inventory. These are obvious opportunities to build your business. But it takes working capital to, well, capitalize on them. You had no idea these opportunities would present themselves, so you didn’t set aside cash reserves. No worries. Merchant cash advances and other types of available working capital loans help you say yes when opportunity knocks.

Every time you have to stop and regroup financially, your business suffers. You lose vital momentum. It’s a distraction. And, boy, is it frustrating! Believe me, I know. United Capital Source started out as a very small business, too. We’ve grown significantly, thanks to our small business clients. But much of that growth is because our philosophy has not changed. Our #1 mission is still to help small businesses grow and thrive. As business lending experts, we can help in very tangible ways. Including setting you up with the right small business loan product.

 

Business Funding

Tags: Funding, Small Business Loans

Blog Posts, Opinions & News

Recent Small Business Funding Locations

Click on each state to view the industry, funding type and loan amount United Capital Source has successfully provided small businesses in each state across America.

Created with Raphaël 2.1.2
Created with Raphaël 2.1.2 HI AK FL ME NY PA VA WV OH IN IL WI NC TN AR MO GA SC KY AL LA MS IA MN OK TX NM KS NE SD ND WY MT CO UT AZ NV OR WA ID CA MI