5 Signs That You Need A Merchant Cash Advance

category: News posted: June 27, 2017
Merchant Cash Advance

Merchant cash advances are often maligned by those who don’t sell them – as well as people who don’t use them. They are often treated like “loan shark” advances, but the truth is that they are one of the best tools a merchant can have in their arsenal. At times, a merchant cash advance can be a better option than a regular bank loan. Not sure if a merchant cash advance is better suited to your needs? Take a look at the following signs below to find out whether you should call a merchant cash advance group rather than a bank.

  1. You’re not 100% sure that you can pay a flat rate every month. Bank loans will not care if your company had a bad month; they will still expect you to pay the sum you agreed to regardless of hardship. If you can’t pay in time, your credit score will take a hit and you will end up possibly losing collateral. Cash advances, on the other hand, will allow you to pay according to what you’ve earned that week. This is why finance experts agree that merchant cash advances are better for people who need flexibility in payment sizes.
  2. You have bad credit, or no collateral. Bad credit, even if it’s your own personal credit, will ruin your ability to get a bank loan in most situations. The same can be said for collateral. If you have neither, your best bet is to get a merchant cash advance. Merchant cash advances do not require credit checks or collateral.
  3. The collateral you do have, you can’t actually risk losing. Everyone assumes that their business will work out in the end, but that’s just not true. Around 90% of all businesses close in the first ten years. If you are considering putting your house for collateral, don’t do it. There’s a serious risk you could lose your home if you fall behind business loan payments. Merchant cash advances do not require collateral, so if you want to avoid this gamble, getting a merchant cash advance is a wise choice.
  4. You really cannot handle hearing that you have to spend the money a certain way. Banks are allowed to tell you how to spend your loan money – and they can take away your cash if you don’t comply. Merchant cash advances don’t allow that, giving you the freedom to spend that money on anything you need.
  5. You don’t need too much money. Microloans are something banks really don’t like giving out. Merchant cash advances, on the other hand, often work best with small amounts.

If you think you might be a good candidate for a merchant cash advance, it’s time to take action. Red Payments has merchant cash advances that allow you to make the most of your business. Give us a call today!