Although many, if not most, small business owners are well aware that they have the option of receiving a merchant cash advance, a common question that many business owners still have is:
When, exactly, should I get a merchant cash advance?
The answer is simple:
Whenever you find that your business is strapped for cash, and a rapid supply of money will help you achieve both your short and long-term goals, a merchant cash advance is right for you. Is your business facing an emergency where you’re finding that you’re short on funds? This may be the perfect time to consider applying for a cash advance. Don’t let a short term emergency bring down everything you have accomplished as a business.
To be sure, you need to consider the type of business you are running. Merchant cash advances are designed for businesses who have already been running for several months and who process credit card transactions. These cash advances are most effective for businesses who find that they are denied loans from a bank due to poor credit scores or previous issues with bankruptcy.
Restaurant businesses tend to make great candidates for business cash advances due to the seasonal style of their business: cash advances can help a great deal during the slow months. Medical practice businesses, such as dental clinics, can also greatly benefit from merchant cash advances because there aren’t many lenders out there who provide loans to these kinds of establishments. To make matters worse, bank loans that cater specifically to medical practices can be hard to find, and being approved can be even harder.
Because the money can be used however the business owner sees fit, there is a variety of ways that merchant cash advances can help generate revenue for a small business. The money can be used for purchasing additional equipment, refurbishing existing equipment, opening new branches, hiring additional employees, and more.
Next, you need to make sure that you qualify for a business cash advance. Although qualifying is relatively quick and simple, there are still several requirements that business owners must meet. Merchant cash advances are available for businesses who have already been in business for at least 6 months and who process Visa and Mastercards. You need to process at least $4,000 in credit / debit card transactions each month. The amount of money that you process will determine just how much your business qualifies for. To learn more, watch a video here.