Your business needs cash to survive and grow, but there are times when your outgoing expenses might outweigh your incoming revenues. When you are a new startup you need as much cash on hand to ensure you can cover your payroll, buy the supplies needed to continue production or providing services, pay your overhead costs, and have enough left over to plan your growth. Depending on seasonal business variations and other factors, that can be difficult to manage at times. Fortunately, merchant account cash advance services can help greatly.
Easier Business Loan Approval
When you apply for a traditional business loan, a potential lender has numerous reasons for refusing the loan, especially if your business does less than $5 million in annual revenue. About 61 percent of business with less than $5 million in annual revenue are refused business loans, according to a recent Pepperdine University study. That makes it hard for you to obtain a business loan if you are a small or even mid-sized startup with an eye toward growth and a need for short-term cash flow. With a merchant account cash advance service, you don’t run into the kinds of obstacles most banks will create when it comes to getting a much-needed business loan.
Benefits of Merchant Account Cash Advance Services:
- Ensured liquidity.
- Payrolls covered.
- Continued production and growth.
- Simplified approval process.
- Rapid processing.
Cash Advance for Increased Business Opportunties
Suppose you need to make a large purchase of supplies to continue business production while awaiting payment from your clients, need to add staff to grow, want to buy a new building or other property so you can have room for expanded production, or maybe have your eye on the newest industrial printer or computer equipment to increase your production capabilities. All of that takes capital to invest so your business can expand. A merchant account cash advance can give you the money you need to add to your staff, purchase real estate, add to your inventory, relocate, buy specialized equipment, invest in a marketing campaign or take care of other needs so you can grow.
How a Merchant Account Cash Advance Works
If you have expenditures that can’t wait while you are awaiting payments from your clients and customers, that could lead to a severe cash shortage for your business and slow down production if you can’t meet the costs of supplies plus labor and overhead. Or, maybe a critical piece of equipment broke down, and you have to repair or replace it right away before your insurance company gets around to cutting a check for your losses. In such instances and many others, you can use a merchant account cash advance to cover your short-term costs and repay the loan in monthly installments. The service gives you and your business an added level of financial protection that can help to ensure your continued success.
Multiple Merchant Account Cash Advance Options
A merchant account cash advance plan generally will provide a loan equal to up to 175 percent of your monthly credit card processing volume. You then pay your monthly loan payments through your monthly credit card, debit card, automated clearing house payments that your customers and clients pay to your business. That makes obtaining a loan painless and simplifies the process. Several different types of merchant cash advance plans are available, including those for businesses that are less than a year old and for businesses that typically are not paid by credit cards or automated clearing house payments. Different types of businesses have different types of cash-flow needs, and there are different cash advance accounts to meet them and help to grow businesses.
Learn more about merchant cash advances and how they can benefit your business by speaking with a Painless Processing representative today.