5 Benefits Of Using A Merchant Cash Advance For Your Small Business

Every industry needs capital to survive, especially for small businesses. However, there are numerous working capital choices available in the market but not everyone is eligible for a quick business loan.

Small businesses often struggle to find the ideal bank that is willing to loan them money. Unfortunately, new businesses usually don’t have credible sources to prove their loyalty to traditional lenders. Hence making the process challenging to procure small or new business funding.

Luckily, a merchant cash advance is the key to get the capital you need. If your business loan application is denied by the traditional lenders, you might rather consider a merchant cash advance. It is a quick process to get the funding for your business without facing any strict approval process.

Find out why merchant cash advance is an excellent alternative financing choice for your small business.

No Need To Put Collateral Or Credit At Stake

The best benefit of a merchant advance is that it is not a loan. It is just based on a future sales transaction making it one of the safest ways to receive cash. Also, it keeps your credit reports clean.

The application process is simple and you can fill it online. You still qualify for approval even if you don’t have a stellar credit score. And because of this, it does not require collateral like a traditional business loan.

No matter what happens with the business, losing collateral is not a risk in the case of MCA.

Fast Funding

Only 1 out of 5 new businesses get approved by the traditional business loan providers. Moreover, most of the new businesses start with the amount of $10,000 or less.

MCA makes it easy to get the funding approval within 2-3 days at most. On the other hand, traditional banks can take up to 2 to 3 weeks to approve the small business funding due to long credit history checks.

It also means that construction companies, retail stores, and other small business owners can have cash in hand to fund their business ventures easily.

High Approval Rate

If you compare the approval rates of the regular commercial bank loans with MCA, it immediately becomes clear that the MCA has the highest approval rate.

MCA lenders will look at daily credit card receipts to evaluate whether your business can pay back the advance promptly.

Out-turn, rates on an MCA can be much higher approval rate than other traditional financing options. Advances are rarely denied in some extreme cases when lenders notice some problems.

Hassle-Free Payback

Not only the application process for a merchant cash advance is simple and hassle-free but also the payback process. Unlike traditional loans which are a flat monthly fee, merchant cash advance payback is based on the revenue that is the percentage of your debit and credit transactions.

The percentage-based collection policy allows you to pay less amount when you have a slower month and you can pay back more in a busy month. You could make monthly, weekly, or can even set daily auto-payments depending on your merchant cash lender.

Use The Money As You Want To

Most of the small business loans come with some restrictions on spending the money. For example, a 504 loan program of the Small Business Administration can’t be used to buy inventory, while some others can’t be spent buying real estate or on paying off debt. It can be difficult to find a reliable funding source without such spending restrictions.

With merchant cash advances, you get a lump sum from a cash advance provider that you can spend according to your needs and requirements. This flexibility can be remarkably advantageous for your business.


Merchant cash advances have numerous perks over traditional financing options. If you have a lack of stellar credit history or haven’t been operational for very long, an MCA is the best source to get the funding for your small business.