A merchant cash advance for a small business opens the door to new growth opportunities. Merchant cash advances allow you to buy more inventory, launch product lines, and expand to new markets. A business cash advance also makes it easier to get more materials for an unexpected opportunity or deal with unforeseen expenses.
The most significant benefit of a cash advance is that you can get your money exactly when you need it. Beyond that, there are three key advantages to choosing a merchant cash advance:
There are a couple of common types of cash advances, which gives business owners a lot more flexibility. Businesses can choose the kind of advance that best suits their needs. The two main types are as follows:
This is a non-traditional type of financing which was created as an innovative way to meet business needs. They are relatively easy to qualify for, mainly because you can get a cash advance with bad credit; the unrestricted nature of these advances and the lack of required collateral means that any business can qualify. The critical requirement has to do with a business’ current cash flow. As long as the company is bringing in enough money, advance funding should be available.
Merchant cash advances do not operate based on an interest rate like most loans do. Instead, these advances use a repayment factor rate. This does create a slightly higher repayment rate but provides much more flexibility. Because there is no credit rating or collateral required, these are sometimes risky for the lending company, and the higher rate helps to minimize that risk.
Since your repayment is a factor of you much you borrow, it’s important to think about how much of your advance you can use right away. It’s also important to find a trustworthy lender who is willing to negotiate when it comes to fees. AMP Advance is an extremely flexible alternative lender who will cater to your needs and provide the best deal possible. Apply today to see if your small business can qualify.