As a business owner, you may face a time when you need capital and need it quickly. Unexpected or unforeseen circumstances can arise, requiring urgent short term financing. From chiropractors to hotel, salon, and bar owners, you may encounter situations that require additional capital.
Commerce climates change rapidly; even the most experienced entrepreneurs sometimes find themselves needing fast, short term business funding. If you are one of these owners and would like more information on possible solutions—please read on to see if a merchant cash advance loan for small businesses is best for you.
In this article we will discuss:
Ready?
Let’s begin.
According to Process NMS, common reasons for a business cash advance include:
Additional reasons for quick financing include:
Funds can also be used to pay bills, improve your credit score, and help create the opportunity for business loans in the future, at lower rates. When used correctly, funding could be the best option. You could use the funds to…
Improving your credit score can also benefit you personally allowing you the get the best rates on…
Despite your need, you may not know where to find capital for your small business. And if you have bad credit, finding financing can be even more difficult.
The good news is there are solutions. Cash advance companies could provide the best solution you need.
A business cash advance (or merchant cash advance) is a quick and short term business funding solution designed to help a business with an immediate need for cash. You can get these loans from $5K up to $1M in as little as 3 business days (it may take longer for the larger amounts of funding). Typically, you can receive up to 10% of your gross annual revenue from funding companies.
Advantages of Business Cash Advances
These funding options offer several advantages compared to traditional bank loans and other forms of funding. The main advantage is speed. A business owner or entrepreneur can get funding through a process that is quick and easy, compared to the long and drawn-out process of applying for a traditional bank loan.
This is important when the need for cash is urgent.
A second advantage is that unlike most small business loans, your credit score is not as important. You also do not need collateral. The cash advance loans for small business focuses more on the health of your business, as opposed to your personal credit score. Basically, the focus is more on the business than on you personally.
Although this can be beneficial if you have bad credit, I recommend working to improve your credit score for the future. You could even use some of the business cash advance loans towards improving your credit, depending on your situation.
An improved credit score provides options for more funding in the future, if needed, with lower interest rates. The higher your credit score, the less interest you typically pay and the more money you save.
Many companies in various industries can benefit from merchant cash advances.
These loans can come in handy for businesses that are:
And for just about any business owner that could use some extra funding.
A more extensive list could include:
Medical and Health Care (ex. Chiropractors, Dentists, Ophthalmologists, Optometrists, Veterinarians, Private Practices, etc.)
Restaurant and Food Services (ex. Restaurants, Bars, Pubs, Franchises, Cafes, Bakeries, Breweries, etc.)
Hospitality (ex. Hotels, Motels, Bed and Breakfast, etc.)
Fashion and Retail (ex. Clothing stores, Sporting Goods, Bicycles Stores, Pet Shops, Hobby Shops, eCommerce, etc.)
Service (ex. Automotive Repair, Beauty Shops/Hairdresser Salons, Barbershops, Massage, Trucking, Construction, Insurance Agencies, Nightclubs, Online and Work From Home Business, etc.)
Now, let’s take a look at the requirements to qualify for the best cash advance loans for small businesses.
To help decide if a merchant cash advance is right for you, let’s take a look at the typical requirements for rapid cash advance lenders. This will save you time and energy so you don’t waste time applying if you are unlikely to qualify.
This knowledge will also allow you to be more prepared and increase your chances of being approved.
Typical requirements include:
If you meet these requirements, you have a good chance to qualify.
But before we discuss how to get a cash advance, it is important to understand how to use them wisely. When business owners use cash advance loans incorrectly, it could make their problems worse.
Because I want every business owner to thrive and have a successful business, let’s discuss common mistakes business owners make with cash advances.
A common mistake is to only look at your immediate need for money.
It is easy to focus on the immediate need for cash when you are struggling and need money now. While a cash advance may provide immediate relief, there are additional factors to consider.
You must always be a few steps ahead. Be prepared.
Here are a few things to consider:
If an influx of cash gives you the working capital needed to build, grow, and stabilize, that’s great. However, if the cash-only pushes back loss, for the time being, you could likely end up right back where you started.
Consider what has caused this need for cash, but also consider if quick cash is likely to turn the situation around.
If you are struggling during your slow months but know revenue will pick back up in the coming months, a cash advance loan might be just what you need. Or, if you can’t fill your orders and need to expand quickly, a fast cash advance could be exactly what you need to grow. In fact, there are many situations where a cash advance can regenerate, boost, and even save a business.
Just make sure to take the time to look beyond the immediate need and evaluate the level of benefit the loan is likely to give you before signing up. Look six months, a year, two years, and even five years into the future. Doing so can save you a lot of headaches.
Now, let’s discuss how to get a fast business cash advance.
If you need quick cash, here are some steps to ensure the process runs fast and smoothly with funding companies.
Request a free consultation
When you are ready to get a business cash advance, the first step is to work with a funding specialist to get the funding you need. These professionals can help you decide what options are best for your unique needs. You can easily request a free consultation today.
Be prepared
Ensure you set an appointment time with the company that is good for you. Be available at that time and take notes if needed. Don’t be afraid to ask questions.
Have documents ready
Typically, you want to have the following documents ready:
By being prepared, you can help the lender help you. This will ensure your business cash advance loan is processed fast and smoothly. Doing so allows you to quickly get the working capital you need.
If you follow these steps you could have the funds in your account in as little as 2-3 days.
Just remember, when you are ready to get a business cash advance fast, follow these steps…
When it comes to business funding, preparation means a lot.
It could be the difference between getting a loan and not getting a loan. When you need quick funding, being prepared and having pertinent documents ready could be mean the difference between getting funding in a few days or a few weeks.
Plus, this prevents the headache of continually going back and forth with your lender. If your lender has to call you and ask for documentation, which you then have to find or prepare, your loan will get delayed.
Plus, letting lenders know that you are responsible, serious, and professional with your documents will leave the lender with a positive impression of you.
In essence, make sure to control the things you can.
You should now have a better understanding of business cash advances, as well as the ability to determine if this type of loan is right for your business.
Let’s review what we have covered today…
If you are ready to get a merchant cash advance, you can visit the website below for a free consultation.
If a merchant cash advance is not right for you, there are other funding options available that may work for you.
Alternatives funding options include…
You can schedule a free consultation with a funding specialist to go over your options.
Simply enter your information and a representative will contact you to discuss your options.
In closing, a merchant cash advance can be helpful when you require quick capital with a simple application process. If you decide to get an advance, make sure you use the funds wisely to grow your business
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