Managing your business and keeping it well-financed can be at times like trying to control a raging river with a will of its own. Here are 5 advantages of merchant cash advances that can help tame the waters.
What is a Merchant Cash Advance Consolidation?
This consolidation loan program is basically a restructuring of your financial obligations so that you can get a better rate, reduce multiple obligations, and service the debt with one lender. Moreover, a merchant cash advance is not technically a loan, but an ‘advance’ that is leveraged against future credit card sales, so there is no fixed monthly payment.
Now, let’s take a look at some of the benefits as to why Merchant Cash Advance Consolidation is the best way to consolidate loans!
Merchant Cash Advance Consolidation is a program lenders like
One of the primary reasons why this type of financing is sought after by many businesses is the fact that it is something that lenders like. When analyzing a potential business, lenders can easily look at the businesses credit card receipt history to make approval quick and painless. Also, by consolidating any other outstanding loans and/debts, the businesses outstanding debts, your finances become easier to manage.
It helps merchants to stabilize
Another major reason of opting for a merchant cash advance consolidation program is that it helps the business merchant stabilize their cash flows. They borrow what they need, when they need it, and pay it down off a percentage of future incoming sales.
Flexibility to expand and contract
Unlike traditional loan programs, this type of program doesn’t require a fixed amount of money as payment to the lender. Instead, think of it as a transaction fee, and you only make a payment based on your future credit card sales. When sales are high you pay off a bit more of the debt, when sales are low, a bit less. At the same time these payments are a fraction of your total sales, allowing you to retain the cash flows that you need to run and grow your business.
Often stated as the biggest advantage of this type of financing is that the program can be customized to the specific factors that impact your business, such as seasonal adjustments, and growth. Loan specialists work to develop a program around your business. not fit your business into a predetermined package. They take into account your operating costs, operating profits, cash flow requirements, and continued expansion and growth funding to find the right mix of cost vs debt service vs cash flow.
It offers quick relief
Merchant cash advance and merchant cash advance consolidation programs are less complicated to get approval for than traditional loans. In fact most businesses can get quick approval within a five days. If you need cash quickly, without extensive red tape, and a program that you can afford, then this may be the right choice for you.