Merchant Cash Advance – What does this mean?

I guess one way to learn what it means to break it word by word.

• Merchant is someone who sells something.
• Cash, so we all know what that means.
• Advance is to provide or pay in expectation of repayment.

So basically it is cash given to a merchant to be repaid. Much like a business loan … but different. A bank lends you money, adds interest and is expected to repay in installments every month.


A cash advance is a little different: Instead of lending you the money and interest charges, they buy some of your future receivables at a discounted rate. You, in turn, repay with a percentage of your daily turnover of a credit card.

It is this difference that allows loan providers to approve merchant nearly 90% of business owners who apply.

Benefits

There are several advantages to this type of financing. A major advantage is that you get your money in a fraction of the time it takes to get a business loan. It only takes a few days to get your money.

Another advantage is that you do not provide your personal assets. In fact, there is no guarantee at all. This frees you from the stress you may lose your home if you default.

Another advantage is that there are no late fees. Because you pay off automatically each time you lots, you can never be late. And because they use a percentage of your sales by credit card, the amount you repay each day changes depending on your sales. It’s pay back the cash advance almost effortlessly.

I only listed a few of the benefits. Use the following link to learn more about the benefits of a merchant cash advance.

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