Pros & Cons of a Merchant Cash Advances

A few years ago, getting the cash to grow a small business was one of the major problems that business owners experienced. However, with the increasing number options for cash advances, financial challenges for small businesses have become a thing of the past. Nowadays, businesses can access capital in a few days by just requesting an advance from merchants. Merchant cash advance (MCA) is a business loan alternative that offers business owners the opportunity to access cash quickly and easily so that they can take care of issues that arise with the expansion of their companies. Like any other form source of capital, merchant cash advance has its pros and cons. However, it is popular for its advantages outweighing the disadvantages.


Easy Qualifications

Unlike small business loans, qualifying for a merchant cash advance is usually easy. MCAs do not require you to have a good credit for you to access them. Lenders of this loan alternative tend to be more interested in the future of your business rather than its past. Additionally, it is a standard criterion for you to show that your business can average a certain amount of sales credit every month. Also, most MCA lenders require you to have been in business for more than 6 months.

Fast Turnaround

Application and funding through MCA are usually quite fast. Besides, the application can easily be done online and does not require you to provide as many documents as would be asked when applying for a bank loan. Additionally, MCA lenders work directly with your EFTPOS terminal supplier. Therefore, they can process your advance request much faster. This is very beneficial particularly when you need capital urgently.


You can access the exact amount of money you need through an MCA. However, you should remember that each funder has different limits. Another benefit of MCAs is that your funding amount never grows even if you take more time in repaying.


Business Limitations

Most MCAs come with restrictions that must be followed during their duration. Some funders may restrict you from changing the location of your business while others restrict you from taking bank loans. Either way, ensure that you go with a funder whose terms and conditions can easily be met and that favor your business.

If you are looking for a business loan alternative that is easy and fast, consider contacting Alpine Funding Partners. We are a trusted merchant cash advance lender that can make the dreams that you have for your business come true.

Call us today to speak to our financial experts.