All owners of businesses will come to a point when they might have to borrow advance cash to get more sales or to beef up their inventory. The sad thing is that money does not always come by that easily. Sometimes a business owner will have to wait a month or two before a business loan can be approved. Aside from this, the monthly payments could be a lot more than what was expected. If your business is at a time when it needs extra money and you accept payments through credit cards, why not try to working with a company that provides credit card processing and merchant cash advance? By doing this, you are working on financing your needs without dipping into your profits.
An advance cash deal works in simple ways. Credit card processing through merchant cash advance is one process by which the borrower agrees to pay back the money borrowed from the future credit card sales that will be made. If your business accepts credit card payments, you can get advance cash from the processing company and they will base this amount from the future Master Card or VISA sales that you will make. The company will take a tiny fixed percentage of your future sales per day and they will do this until you have paid the balance fully. A lot of business owners look forward to the percentage method because it means that if they make fewer sales for that month, the monthly payments are also lower. In case there is a slow business month, you still do not get caught in the middle of a high payment loan. Everyone wins in an advance cash deal.
The cash advance that you get from this setup can be used for a variety of things. Perhaps you are a retailer and you need to purchase more inventory for a big sale that is happening in a couple of weeks. The money is needed right away so you cannot afford to wait for a business loan to be processed. An advance cash deal can be great for this situation since you will get the money within a week at the most.
Maybe you are a restaurateur and you need to conduct some remodeling or change older chairs and tables in your dining area. Using the merchant cash advance, the money will be available and you do not have to dip into your retained income. There are other industries that make use of this advance cash scheme such as retailers, professional firms, hair salons, automotive shops, etc.
A merchant cash advance may also be used for leveling out a business’ cash flow. Problems with your cash flow can cause issues such as lay-offs or even a shut down of the business. These problems can happen when you get lower sales but maintain the same level of expenses. This happens at one point or another in most businesses and it is actually the biggest reasons why firms lay off some employees. If you are paying high prices for your office space and utilities, your problems with cash flow can lead to reducing your inventory and this further harms your sales. A merchant cash advance deal can help you get out of this problem.