It can be difficult to get up and running when you are a small business. You need money to get started, but if you have not made much profit from your business yet and do not have the finances to do so on your own, a merchant cash advance may be a good solution.
What is a Merchant Cash Advance?
This type of cash advance is different from a business loan. The approval process is typically quicker and not as difficult. This type of cash advance gives you a lump sum of money based on the future profits of your business.
Who Needs A Cash Advance?
A cash advance is not just for businesses that are just starting up. It is a great way to get a lump sum of money when you are looking to expand your business, either with a new location or by adding to your current location.
This situation may also benefit you if your business has fallen on hard times. You may feel that there is no choice but to shut down or declare bankruptcy, but a cash advance may help you get back on your feet by allowing you to catch up on bills and promote your business through advertising.
How Are These Cash Advances Repaid?
There are a couple of ways these advances can be repaid. One option is to have a predetermined amount of your credit and debit card sales go straight back to the lender. On the other hand, you might have an automatic withdrawal of a fixed amount drawn from your business account.
The option that is better for you depends on your needs. For example, if you have a lot of customers who pay in cash and you would like to know when exactly the advance will be repaid, then fixed withdrawals may be your best option. Alternatively, if you have a high amount of debit and credit card sales and you want the loan paid off as quickly as possible based on your business earnings, then you may determine that the percentage from debit and credit card purchases is better for you.
A merchant cash advance can be a good option for businesses in several different situations. Whether you are a small business just starting up, a business that has fallen on hard times, or a successful business that is looking to expand, then look into this type of cash advance to acquire the lump sum of funds your business needs. Contact Latta Commercial Capital today to get a merchant cash advance for your business.