If slow sales, piling debt and cash flow crunch are weighing down your small business, you have good reason to worry. Your small business would not be the first to become a victim of this economic recession. Hardly heartening news, but true. The point is, is this where you choose to give up or are you willing to give it all you have?

The last year has seen the rise of an unconventional finance source – business cash advance. The business cash advance or merchant cash advance (MCA) industry is relatively new, and it has pulled many small businesses out of the clutches of the global crisis. Though the lending rates are higher than small business loans, business cash advances do not need  a business plan, guarantees, liens, or collateral. Business cash advances range from $3,000 to $300,000 with the majority of businesses receiving $20,000 to $30,000.

Small businesses also benefit from…

• NO application fees
• NO out-of-pocket expenses
• NO fixed monthly payments

Merchant Cash Advance is an unsecured commercial loan. The prerequisite to getting approved is a minimum record of credit card sales receivables for 1 year and having been in business for atleast 2 years. Good credit scores are preferable, but a bad credit score does not disqualify you for the advance. The business cash advance lender purchases a percentage (10%-25%) of your future credit card receivables for a fixed flat rate. The business cash advance company gets paid back immediately following the batch process that occurs regularly during credit card processing. The credit card receipts are sent electronically from the merchants credit card terminals to the credit card processors back office system, which is programmed to perform split processing where a percentage of the payment is sent to the merchant’s bank account and a percentage to the merchant cash advance company’s bank account until the payback amount is reached. The duration of the merchant cash advance can vary from 6-12 months or longer if you have worked with the business cash advance lender before.

The factors that really work for you with a business cash advance are – quick approval cycle with minimum paperwork; amount credited into your account within 2-3 days or a week max; no collateral or personal guarantors; no fixed installment dates; no late fees.

You get the money when you need it most, with no questions asked. You can use it as working capital, to fund expansion, an acquisition, pay off debts, anything and everything you plan to get your business out of the doldrums.

In summary, work with reputed business cash advance companies to give your business a fair chance as we emerge from this deep recession. Make sure you review the MCA contract carefully and understand the fine print to avoid any surprises.

Tags: Business Cash Advance, Credit Card Processing, Small Business Loans

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