What Are The Advantages Of Taking A Merchant Cash Advance?

All business owners need money to grow their businesses. The only problem is that getting money from banks isn’t so easy these days. Any Canadian business owner who has ever visited a bank in order to secure a business loan knows how tough it is. There are many loops to jump through and many requirements to meet. And, many times, even when all points have been checked off, the loan still isn’t approved.

Why are so many Canadian business owners turned down by their banks? Well, there are numerous reasons. Often, it has to do with some of the most important requirements not being met. One’s credit history, for example, is a huge factor. If an individual has had late payments on a credit card or there is any other indication that he/she has had problems making payments on time to a creditor, his/her chances of securing a loan diminish.

Some business owners don’t have the collateral necessary to secure bank loans. Banks need to make sure that their interests are protected. That means that borrowers need to put something on the line – like their houses – to ensure that the banks don’t lose out if the loan cannot be repaid. Business owners also require detailed business plans to make loan officers feel confident that they know how borrowers will be able to generate enough money to pay back the loans.

What makes merchant cash advances the ideal alternative? The securing of a merchant cash advances does not entail any of the above mentioned requirements. You see, merchant cash advances are not loans. In other words, they do not represent borrowed money. Instead, they are payments for future credit card and debit card sales. An advance is simply the receiving of money in advance of credit and debit sales that are bound to be made.

Because business owners are able to sell their future transactions at discounted rates, the money they receive is theirs. Again, it is not borrowed. Because of this, no detailed business plans are required and business owners are free to do with their money as they please. In addition, there are no credit checks and no collateral is needed. Attaining a merchant cash advance, therefore, is far easier that securing a business loan from a bank!

What can business owners do with their merchant cash advances? Here is the simple answer: anything they want! To reiterate, it is not borrowed money. The truth is that, once a business owner receives his/her merchant cash advance, it can be used for any purpose. It is highly recommended, of course, that the money be invested back into the business. Most business owners use their advances for renovations, advertising, expansion and/or inventory.

How is a merchant cash advance paid back? This aspect of merchant cash advance programs is often heralded as the best feature. Repayment is made automatically through a small percentage of a merchant’s future credit card and debit card sales. There are no monthly minimum requirements and there is no payment schedule. Payments are made when sales are made. It’s really that simple!
At Canadian POS Corporation, we understand that when an opportunity or unexpected emergency presents itself, timing is everything. That is why we are happy to offer Canadian business owners the funds they need to take advantage of such opportunities within 24 hours! To receive a free, no obligation quote for a merchant cash advance, call us 1-877-748-2884 or email us at info@localhost.