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Benefits of a Merchant Cash Advance for Small Businesses

Hand holding up two twenty dollar bills

If a small business was a car, then cash flow would be the gas that makes it run. Just like you need to fill up your vehicle’s tank to get anywhere, a small business needs access to financing to grow and to prosper.

A business owner might need a cash infusion to restock the shelves with products, to help pay for a new marketing initiative, or to invest in equipment that will lower their costs over the long run. Whatever the need, the problem remains the same: what is the best way to access funding quickly and easily?

Enter merchant cash advance financing.


purchasing a boba with a credit card

What is a Merchant Cash Advance?

A merchant cash advance is a lump sum provided by a lender, which is made in exchange for a percentage of a business’s future credit card sales. It’s almost like a traditional loan from a bank, but easier. Unlike other small business loans, merchant cash advance financing is also quick and efficient.

Is a Merchant Cash Advance Quick?

Once you’ve had your preliminary call, have provided the necessary information and documentation, and are approved, you can get your funds in as little as 24 hours! The alternative is to wait weeks for banks to approve the loan, something that often requires a lot more paperwork and red tape as well.

Are Merchant Cash Advances Right For Me?

The nature (and benefits) associated with merchant cash advances for small and medium sized businesses is the flexibility they bring. As such, a merchant cash advance is perfect for some situations, and less ideal for others. The key is finding a provider that views each situation as unique, and that can tailor their financial solutions to fit a variety of situations.

How Important is my Credit History?

Merchant Growth will want to review your business credit score, as well as have a look at your business bank statements. Using the information, we’ll be able to determine the best solution for your needs.The findings will affect the cash advance term length, which often ranges anywhere from six months to a year and a half.

The terms of the deal, including the interest rates you’ll pay and the schedule in which you’ll pay them, is often highly correlated with the volume of business credit card sales. The amount of transactions you process is great information for an alternative business financing company to use. Debit card sales and a history of frequent credit card sales will give the lender the information they need to determine the most mutually profitable repayment model.


card on a reader

Repayment Adapted to Your Business Model

As mentioned above, one of the best things about working with a merchant cash advance provider (as opposed to using a traditional bank loan) is the flexibility you get with a merchant cash advance.

For example, small business owners may prefer to pay back a small amount of their cash advance daily or weekly. Using future sales (credit card sales and debit purchases) as a pool to draw from, a business owner may want to have a flat rate set in advance to maintain a more consistent prediction of their available cash flow, or they may wish to have their small business loan rate change dynamically, so they can pay more when the business is busy, and less when it’s not.

Companies like Merchant Growth specialize in this kind of business.

What Can I Use My Cash Advance For?

The beauty of merchant cash advances are that they can be used for anything your business needs to survive and thrive! The money can be directed towards credit card payments, it can be used to purchase inventory, or it can be used to hire additional staff. Alternatively, the money can be used to update equipment, pay for a new marketing campaign, or pay suppliers. You can even use the money to relocate or renovate your existing business.

Only you will know the best way for the business funding to lead to improved cash flow and better financial health for your company.

What Determines the Size of my Loan? Credit Card Sales?

Every business is unique, and merchant cash advance providers take many factors into account that determine the size of the loan.

Lenders will want to know the size of your requested advance, the size of your business, your industry, your average sales, and the level of seasonality of your business. The worry is not so much about bad credit and as having a stellar credit score is not a necessity. The interest is more in the health of the business and its cash flow potential.

The best way to get answers is to fill out an online application form with a few pieces of basic information, and we will often contact you within a day or so to discuss the merchant cash advance in greater detail.


yellow credit card

Are There any Minimum Requirements for Merchant Cash Advances?

Every alternative financier is different, but for Merchant Growth, there are three basic minimum requirements your company must fulfill in order to receive funding. Your business must:

  1. Be located in Canada
  2. Have monthly revenue of $10,000 or more
  3. Have been in business for at least six months

It’s that simple!

Borrowing Money Doesn’t Have to Be Complicated

With a lightning-fast application process, merchant cash advances can be the ultimate alternative to traditional loans from the bank. While traditional financing options are often slow and conservatively managed, online lenders like Merchant Growth can connect you with the cash you need right away – often within 24 hours after getting in touch with us!

Receive anywhere from $5,000 to $500,000 with no hidden fees, and no collateral required. Once the money is in your account, you can focus your attention where it is needed most: in the day-to-day operation of your business.

Contact us today – Merchant Growth has you covered!

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Complete our online application and we’ll contact you to present financing options tailored to your business needs.