Is this a Business Loan?

No. Simply stated, a merchant cash advance, or credit and receivables funding, is not a traditional business loan. In fact, it is important to remember that a merchant cash advance is not a loan at all. A merchant advance is simply the purchase of your future credit card receivables at a discounted rate. The repayment of the advance then happens at a fixed percentage of your daily credit card processing and there is no set monthly payment amount. So, if you happen to process less one day you simply repay less on that particular day.

Small business advances are a new approach to small business financial emergencies.

Merchant cash advances are a simple, safe, and fast alternative to traditional small business loans. This type of small business advance was designed and developed to avoid the common pitfalls and hassles associated with traditional business bank loans. The merchant cash advance is a cutting-edge and welcome approach for small businesses that prefer not to jump through the traditional banking hoops or have difficulty qualifying for the typical small business loan.

Are there advantages to using a merchant cash advance?

Absolutely! There are advantages to choosing a merchant cash advance over a small business loan, which every business owner should know. First of all, small business cash advances have more relaxed qualifications for approval when compared to the traditional business loan and the approval rate is much quicker. That means access to much-needed business capital is quick and easy with an affordable factor rate. When a small business is suffering from a cash flow emergency, speed is of the essence.

Fast funding means fast financial solutions for any small business.

A merchant cash advance is typically accessible much sooner than funds from traditional small business loans. The average business cash advance is made available to merchants within 3 to 10 business days. That means your business can get operating capital in as little as 72 hours, depending on application requirements. Funding is direct—right into your business checking account via bank wire or electronic transfers.

Small business owners can relax knowing that there are no restrictions on how the merchant cash advance funds are spent, like with some small business loans. Many business loan applications require detailed explanations outlining what the funding is intended for. That is not the case with merchant cash advances. Your business can use the capital received through the business advance to buy out a partner, expand the business, purchase new equipment, renovations, marketing, or any other expenditure that will benefit your business operations.

Merchant cash advances are not only safe and secure but discreet and easy.

A merchant cash advance allows any small business to obtain the working capital necessary to continue operating normally. A small business advance is a proven asset for many young small businesses or those that simply cannot qualify for business loans due to little or poor credit history.

Merchant cash advances, the alternative to traditional business loans, allow small businesses to capitalize on their proven performance and stay on the right track for success. Unlike business loans, merchant cash advances do not require fixed monthly payments, no fixed timeframes for repayment, and are completely automated for the sake of ease, security, and convenience. Learn More

If you would like to learn more about how a merchant cash advance from Business Loan Option can help your small business succeed, please feel free to read through our FAQ page or contact us directly with any additional questions using our online contact form. Or, if you'd like to see how much your company can qualify for right now, try out our Business Advance Calculator.