Merchant Cash Advance: Working Capital for Bigger Business Building
December 29, 2022
Reading Time: 3 Minutes
Working Capital is a “Must Have” to Grow your Business
If growing your business was always as straightforward as increasing the number of customers you serve or selling more products, we would all be in luck. Focusing on long term growth and preparing for incremental changes brought about by unknowns has never been more important than now. Working Capital is critical, yet obtaining financing isn’t always simple for today’s business owner. If obtaining funding from your bank proves difficult, there are other options. Why not explore a Merchant Cash Advance?
The Nuts & Bolts of Merchant Cash Advance
A Merchant Cash Advance is a lump sum payment to a business in exchange for an agreed-upon percentage of future credit card and/or debit card profits. Merchant Cash Advance companies provide funds to businesses in exchange for a percentage of the businesses’ daily credit card income. This percentage is taken directly from the processor that clears and settles the credit card payment. A company’s outstanding payments are drawn from customers’ debit- and credit-card purchases until the full remittance has been completed. Most providers create partnerships with credit card payment processors and take payments directly from a business owner’s card-swipe terminal. It’s that simple.
Why Consider a Cash Advance?
There’s no risk in exploring merchant cash advance opportunities. The process is simple and transparent if you’re working with a credible payment processing partner. Key benefits include:
- Minimal documentation requirements
- Quick turn-around time on decision – often less than 24 hours
- Not classified as a loan so there’s no impact on your credit
- No restrictions on use
What Can You do with a Cash Advance?
The possibilities of what you can do with a Cash Advance are endless. In today’s competitive market, here’s just a small sample of how you can put your Cash Advance to work for you:
- Fund payroll
- Buy or Upgrade equipment
- Open new locations
- Hire talent
- Invest in sales/marketing
- Fund Daily expenditures
- Do renovations
- Pursue new business ventures
- Expand your current operation
- Personal usage – no business plan required
PayTech Trust Can Help You Navigate the Merchant Cash Advance Process
Put our 30 years of experience to work for you. Contact PayTech Trust today for a complimentary discussion to explore if a Merchant Cash Advance is right for you.
- Working capital is critical since it is used to keep a business operating smoothly and meet all its financial obligations within the coming year.
- Merchant Cash Advance with PayTech Trust: 3-4 day turnaround to fund money.
- Primary reasons to seek Working Capital: holiday inventory update, EOY fiscal obligations, tax purposes.
Originally Published: 05/07/2020 | Updated: 12/29/2022