Most business owners are aware of the necessity of having access to outside sources of funding so that they can take advantage of opportunities that arise. However, many companies do not qualify for traditional loans, which means that they have to find alternative methods of financing. Merchant cash advances are loans based on future debit and credit card sales. Here are some of the benefits of this type of funding.

Obtain Funding Regardless of Your Credit Score

When you apply for a merchant cash advance, lenders do not require your credit score, and your assets do not need to be put up as collateral. Instead, you receive the loan as an advance based on upcoming credit card sales. Even businesses with bad credit can be approved for merchant cash advances, and businesses in niche industries that often have difficulty obtaining traditional loans can find the funding they need.

Receive Needed Capital Quickly

Many companies that apply for traditional loans wait weeks or even months for an answer and then are turned down. When you apply for a merchant cash advance, you can receive your funding within a day or two or three days at the most. This means that you have the financing when you need it to pay your employees, restock inventory, upgrade your equipment, or take advantage of unexpected growth opportunities.

Make Payments Easily

Depending upon the requirements of individual lenders, merchant cash advance payments may be made daily, weekly, or monthly. Unlike a traditional loan, though, which you have to pay back in regular monthly increments regardless of how your business is doing, payments of merchant cash advances consist of a percentage of your credit card sales. When sales are down, your payments are smaller, and when sales pick up, your payments increase. In this way, the individual payments have less impact on your business.

For more advice on merchant cash advances, get in touch with Porter Capital Group.