As the owner of a new small business, you undoubtedly recognize that there are challenges you face that are not always as prevalent in larger or more established companies. Although you may have conducted many studies to prove that your product offering is bound for success in your online or physical space, lending institutions may not share your level of excitement and certainty. Obtaining the needed financing for your venture may prove to be the most difficult aspect of all. There is an option that has helped many small business owners bypass the hurdles of applying for traditional loans that end in denials due to issues such as lack of strong credit history. A merchant cash advance provides immediate funds to businesses, while allowing the borrower to pay back the loan in monthly payments that correspond to the daily income received from credit card transactions. This payment structure can often prove more beneficial than the longer and larger monthly payments traditionally associated with a typical bank loan, as your payments will fluctuate with the level of your sales volume.

Your Money Your Way

Traditional loans can come with stipulations of how the money may be spent. Depending on the type of loan you receive, you might be restricted from using the money to buy more inventory or to pay off another loan, for example. A merchant cash advance does not come with those types of restrictions. You have the freedom to decide how and where to spend those funds.

Less Risk

To obtain approval for a traditional loan, you could be required to have a certain level of financial assets and have a high credit score with a business history that may not be available as a new business. The cash advance would not require those stipulations. You are simply borrowing against the future profits that will be received from your credit card sales. If you can prove a level of stability in credit card transactions, you have a good chance of getting approved. Because the payments will be taken from your future profits, you will not have the worry of your company assets or credit score being negatively impacted if you encounter months of slower sales.

As a small business owner, you have invested much of yourself to ensure your business will be a great success. You should find a lending partner who will make the same investment in you. Let the benefits of a merchant cash advance work for your business.