The poor reputation of traditional bank loans stems largely from their stringent repayment process. Borrowers must begin paying back the debt almost immediately after funding is distributed. This makes business owners understandably hesitant about using bank loans to finance both short & long-term investments, or borrowing during their industry’s slow period.
How are they supposed to make fixed, monthly payments when they barely have enough capital to cover regular expenses? Yes, they may be using the funding to boost revenue but sometimes, that boost does not occur for several months after an investment is made.
Businesses that conduct a great deal of sales via debit or credit card can avoid these dilemmas with a Merchant Cash Advance. This type of working capital loan is geared primarily towards businesses that are naturally prone to cyclical, lengthy dips in cash flow. While a merchant cash advance can be used for a wide variety of purposes, it is just as appropriate for businesses looking to increase revenue over an elongated period of time as it is for the business looking to capitalize on a more immediate opportunity. Contact us today for your free business funding consultation!