There are a variety of reasons that businesses seek out merchant cash advances. For some, the credit requirements for conventional loans prove unrealistic for a burgeoning small business to meet. For others, it’s a question of speed and convenience: in today’s fast-paced economy most small businesses can’t afford to wait weeks or even months for conventional loans, which frequently entail lengthy approval process and delayed disbursement of funds.
One last reason to consider a merchant cash advance? The business-friendly nature of their repayment plans.
Merchant cash advances are repaid based upon income.
Conventional loans come with a fixed repayment plan that won’t vary regardless of the month-to-month cash flow of your business. (Even so-called “adjustable” loans–for example an Adjustable Rate Mortgage–only vary based upon the overall conditions of the credit market, not the month-to-month conditions of your business.)
Merchant cash advances are different. In fact, a merchant cash advance is not a loan at all–it is a sale of future profits. This entails a repayment plan that automatically adjusts depending on your ability to make payments. During a slow month (or during an “off-season”) your payments will only reflect a set percentage of your income during that month. During “high-season,” on the other hand, your payments will still consist of that same percentage of income, thus allowing you to pay the most during the seasons that you are most able to pay.
Contact ACC funding for more information on a merchant cash advance!
Here at Allied Capital Corporation we believe in giving small businesses the opportunity to succeed–which is why we offer a hassle-free, same day approval process that allows you gain access to funding within 48 hours. Check out our website today or call 1-844-411-FUND! We look forward to helping you make your dreams a reality!