Small businesses have alternative financing options to a traditional loan such as merchant cash advance. Merchant cash advances provide a welcome solution to the lingering decline in small business lending. There hasn’t been much of a small business lending recovery since the credit contraction following the 2007-2008 banking crisis. In fact, commercial lending of sums under $1 million have decreased every year since, according to a Federal Reserve Bank of San Francisco published article citing Federal Deposit Insurance Corporation (FDIC) data. It’s no wonder merchant cash advances are well on their way to becoming the new normal in small business lending.
A merchant cash advance can be a great option for a small business in need of a cash infusion, quickly. The traditional lending process small business owners typically encounter when trying to borrow money from banks and credit unions can be a slow and onerous one, often involving rigid terms and conditions. That is not at all the case with merchant cash advances. This small business lending option is perceived as more of an advance than it is a loan whereby funds are typically repaid by collecting a small percentage of monthly credit card sales or even monthly ACH Processing transactions. Notably, this makes for a marked ease in repayment, reducing paperwork and a myriad of other associated hassles.
There are merchant services providers like Painless Processing that offer merchants a variety of merchant cash advance and small business lending options. After all, small businesses are as individual in their specific financial needs as the people that own and operate them. It just makes sense to make it possible to provide a variety of merchant cash advance options to help ensure a more custom solution to meet funding needs. Painless Processing provides services to industries that traditional lending institutions won’t service such as adult businesses, electronic cigarettes, e-liquids, vaporizers, firearms, travel agencies, collections or credit repair businesses, tobacco merchants, or any other merchant, business, product, or service designated as a high-risk merchant.
Painless Processing provides merchant cash advances of up to 175 percent of monthly credit card or ACH sales; in amounts ranging as high has $500,000. However, Painless also offers a nice variety of private lending options as well, including micro loans, non-collateralized cash loans, and direct line of credit opportunities. Small business owners can find a funding solution that best fits their needs, rather than having to make due with poorly fitting options with burdensome terms that threaten long-term success or, worse yet, forego growth opportunities due to inadequate funding.
Instead of rigid repayment schedules requiring a specific sum each month, no matter how business has been, Painless Processing offers merchant cash advances that are repaid with a percentage of sales. If business is slow, a business owner doesn’t have to deal with the stress of a looming fixed sum payment. That approach avoids cash flow problems and helps to protect the long-term health of the business. Painless strives to offer the sort of flexibility in financing that small businesses really need to help them succeed.
Practical, Accessible Solutions
Small businesses, whether they are low risk or high risk merchants, can have easy access to practical lending solutions in order to meet their funding needs through Painless Processing. These sorts of alternative financing options made possible by a reputable merchant cash advance lender and forward-thinking financial services provider is an essential part of small business growth today; a trend that is likely to continue well into the future. Traditional lenders have made it very clear where their loyalties lie, and it isn’t with the small business entrepreneur. While small business lending still hasn’t returned to the level it was at prior to the banking crisis, commercial lending for sums over $1 million has made a full and complete recovery. However, merchant service providers like Painless Processing are doing everything they can to provide small business merchants with all the payment processing and small business funding solutions they need to grow and succeed in today’s market.
Key Take Away Points
So now that there is a relative understanding of how a merchant cash advance can benefit small businesses in need of a cash infusion; it’s important to reiterate and take away some of the key points that make merchant cash advances beneficial:
- The merchant cash advance application, approval, and funding process is typically a couple of days, sometimes as little as 24 hours, whereas a traditional small business loan usually takes a couple of weeks just for underwriting.
- The underwriting process and the supporting documentation you need to provide for a merchant cash advance is significantly less compared to a traditional small business loan.
- There is much less liability with a merchant cash advance. Repayments are tied into merchant account or ACH sales transactions and there is typically no requirement to sign a personal guarantee.
- Repayments are a percentage of sales from either merchant account or ACH transactions and the repayments are taken automatically so merchants don’t have to think about having a certain amount of money within their account at the end of month.
- Merchant cash advance lenders typically do not have restrictions as to how you can use the borrowed money whereas small business loans from banks usually want to know who, what, when, where, why, and how you will use the money they lend you.
- Lastly, merchant cash advance loans are usually a set term length; however, they can be easily and quickly renewed and increased upon commencement.
There are other benefits to getting a merchant cash advance that further demonstrate why this form of hassle-free small business lending is rapidly growing in popularity over traditional small business loan options. To learn more about merchant cash advance and how it can specifically benefit your business contact Painless Processing and a merchant cash advance expert will explain the process, walk you through it, and answer all of your questions.