Your business can be wildly successful in its sales, revenue, and customer acquisition and retention rates — but still lack the cash flow it needs to maintain business operations and invest in growth. It’s a common business challenge, since most banks and traditional lenders require businesses to have an established credit history and years of consistent and positive financial performance before they can even apply for a business loan, or line of credit.
For business owners facing funding challenges, the benefits of merchant cash advances (MCA) — which allows a business to borrow cash upfront in exchange for repayment based on future credit card sales — can be immense.
Here’s a closer look at the advantages of cash in advance when it comes to ensuring your business’s financial stability, and how merchant cash advances work to support it.
The Benefits of Merchant Cash Advances
Easy Application Process
Merchant cash advances don’t require that you have a certain amount of collateral or assets to back the loan, a high credit score, or robust business credit history. Instead, the approval process is primarily based on sales volume and sales history.
To apply for a Lendr MCA, you simply need to provide:
- Proof of ownership for your business
- Documentation that your business has operated for at least 12 months
- Proof of monthly revenue of at least $10,000
- A credit score of at least 520
The approval process for a merchant cash advance can be handled entirely online, and takes as little as five minutes.
Quick Access to Cash
You have financial obligations as part of your business, which may include paying your employees, taxes, vendors and monthly lease obligations. Unlike a traditional loan that can take months to fund, a merchant cash advance could provide access to as much as $250,000 for approved borrowers, which can be electronically transferred in just 48 hours. You are free to borrow as much as you need (up to your approved amount); you determine how to use the funds to best support your business needs.
When you borrow, you simply agree to pay back the advance, plus a fee, by allowing Lendr to take a fixed percentage of your daily bank deposits until the loan is paid back in full.
Repayment Is Based on Your Real-Time Revenue
Unlike a traditional business loan, which typically requires a monthly payment in a predetermined amount, MCA repayment schedules can be customized based on your business’s performance. In months where sales volume is high, for example, a higher monthly payment toward your MCA may be required (plus any fees and interest rate charges the MCA terms may include). In times where sales volume is lower, your required MCA payment will adjust lower in tandem, to help alleviate some of your financial strain until sales are strong again.
Are you ready to stop worrying about cash flow each month, and find the support of a financial solution that allows your business to flourish and remain financially stable? Just answer a few basic questions about your business to start your application for a Lendr merchant cash advance today!