Merchant cash advances aren’t exactly know for having a good reputation when compared to traditional business funding methods, but that doesn’t mean that they aren’t good. Truthfully, the business funding industry is currently dealing with a major paradigm shift. Major companies and entire sectors are beginning to bail on big banks in favor of merchant cash advances. Wondering why this is? Here are four reasons why smaller businesses are falling in love with this funding method.
- You get full reign on what you want to do with the money. Traditional banks and loan methods will require you to use the money for specific purposes. In some cases, you may even be required to provide proof that you spent the money as you promise you would. With merchant cash advances, the money is yours to spend as you see fit. There are no limitations on what you can use the money for.
- Traditional bank loans often favor businesses that have been in business for decades. New businesses almost never get traditional bank loan approvals anymore. The standards that banks require are just too high. Most small businesses are still relatively new, so they often are forced to choose alternative funding.
- Merchant cash advances are fast. Traditional business funding can take weeks, months, or even years to reach the disbursing phase. For many business opportunities, this is just not fast enough! Cash advances only take days to clear and disburse. When you combine the speed of disbursement with the 80% approval rates, it’s easy to see why many entrepreneurs prefer them.
- You don’t need to know someone or act a certain way to get the funding you need. With other funding methods, business owners often have to rely on their connections or put on a show to prove that they are worth lending to. With merchant cash advances, you don’t have to worry about this issue. All that matters to cash advance companies is that your company gets sales via credit cards – and that’s the way it should be.
Merchant cash advances are quickly losing the stigma that they once had, and that’s a wonderful thing to see. If you have been turned down by other lenders, it may be time to consider choosing a merchant cash advance.