Merchant cash advances and merchant lending programs can help small businesses get instant capital funding for their operations. A merchant cash advance provides instant capital funding for businesses because of same day approvals, meaning you can get cash within 24 to 48 hours. Merchant cash advance loans are better than loans from conventional banks if you need cash quickly and do not want to have fixed payments for your loan. Merchant lending programs give businesses access to lump sum payments in exchange for debit and credit sales.
Here are a few reasons why small businesses prefer merchant cash advance loans and merchant lending programs.
1. The speed at which businesses receive funds: For a normal loan from a conventional bank, you have to fill out an extensive application, drive to the bank, get interviewed by a bank representative and then wait four to six weeks to see if you get approved. It’s always better to apply for a merchant cash advance loan online if you are looking to get cash quickly. Most small business need instant capital funding.
2. Merchant loans can go up to any limit: Merchant lending programs and cash advance programs are very flexible. For example, if a business wants to buy industrial equipment for $5,000 or if it wants $50,000 for establishing a new unit, a merchant cash advance can get you the money that you need within 24 to 48 hours. There is no limit to the amount of money you can apply for.
3. Compassionate requirements: If you or your business has bad credit, getting approved for a loan through a merchant lending program is much easier than at a big bank.
4. Very Agile in nature: Conventional banks only give loans to businesses in their own community. However, a lot of small businesses are not confined to one particular area or community, like online businesses. A merchant cash advance can be approved and distributed online.
5. No collateral: Many conventional loans require you to have collateral to back the loan. But with a merchant cash advance, you do not need collateral.