What is a Merchant Cash Advance?

A merchant cash advance is one-time lump-sum payment to a business in exchange for a percentage of future credit or debit sales. These are useful for businesses who need cash in the short-term as the approval for an advance like this will only take up to a few days. With Global Funding Direct you could have cash in just one day.

In order to qualify for a merchant cash advance, a business will need to have a steady monthly revenue. Exactly how much this revenue needs to be is dependent on the specific provider that you’re dealing with. These advances are great stop-gaps for small businesses who need cash right now for things like expensive repairs that can’t wait.

Many small business owners look at a cash advance like this as an investment opportunity.

With a lump sum accessible at hand, they can make additions to their business like new state-of-the-art equipment or training for current employees that could help grow their business on a consistent basis.

The important thing to remember is to use your advance wisely. Carefully weigh your options when deciding what to spend it on. Don’t spend any of it on personal items or expenses as a new TV will not help grow your business or help to pay back the advance. Many small businesses don’t have the cash available to fund expanding in anyway on their own, and will instead need to rely on outside funding, such as a merchant cash advance.

If you properly plan and research your expansion, a merchant cash advance could help fast track your business’s growth. Consider too that with the added growth of your business after your expansion or addition, it will be much more practical for you to pay back the advance.

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