Industry Insight: Why A Merchant Cash Advance Can Benefit Your Business

merchant cash advance benefits business loan

All businesses, of any size or scale, require an extra helping hand now and again when it comes to finance. Larger scale businesses, however, are generally able to secure themselves loans with the banks, which often smaller businesses struggle to achieve. In fact, according to Fintech times, the value of bank loans being offered to small and medium sized businesses via the government’s flagship small business lending scheme has fallen to a ‘record low’. Fortunately, there are alternative funding options out there, such as a merchant cash advance, which SME Loans can offer you. This funding option is well suited to small business owners and is a brilliant way for any business owner to increase their cash flow, whilst simultaneously enjoying the other great benefits that a merchant cash advance is able to provide you with. 

Quick Application 

Whilst more traditional types of loans can take long periods to apply for, a merchant cash advance can be applied for in the space of just a few minutes. Furthermore, the application forms can be filled out entirely online, making it a highly convenient process. There is no need for tedious phone calls, meetings at the bank or complicated paperwork to be filled out; the process is quick and painless, making it an especially great option for any busy business owners. 

A Perfect Credit Score Is Not Necessary 

Often when applying for a loan, a perfect or very near perfect credit score is required of you in order for your application to gain approval. However, with a merchant cash advance, you are instead assessed on the number of credit card sales that you process each month. Consequently, getting approval is much easier and much more likely; all you are dependent on is a decent level of monthly revenue through card sales, which most small companies will already have. 

Quick Funding 

One of the brilliant benefits of a merchant cash advance is just how quickly you can receive the funding. Unlike with a traditional bank loan, funds from a cash advance can be in your bank account within as little as 24 hours. A traditional bank loan, on the other hand, can take weeks to reach your account, potentially leaving you struggling to stay afloat in the meantime. If there are repairs that suddenly need doing, for example, or there is a problem with your plumbing that needs to be sorted out right away, there is no time to be sat waiting around for extra funding to come in. 

Interest Free 

A merchant cash advance will be offered to you on an interest free basis, a perk which many other loans or funding options do not provide. As such, the total sum to be repaid is consequently reduced, as interest rates typically make up a large chunk of the overall cost. As there are no interest rates involved, merchant cash advances tend to be one of the most affordable funding options out there. 

Flexible Repayments 

One of the greatest benefits a merchant cash advance can offer your business is the flexible repayment scheme. In exchange for the lump sum you borrow, you pledge a percentage of your future credit card sales. As such, the total sum of each of your monthly repayments will be calculated in accordance with your monthly earnings: if one month you earn less than is typical, you will in turn repay less for that month. This system of repayment is highly flexible and is incredibly accommodating to the borrower; there should be no reason for you to be feeling stressed or under any pressure to meet the repayments. 

Increased Cash Flow 

The most obvious benefit of a merchant cash advance is of course the increased cash flow which it will bring to your company. It will allow you to almost instantaneously solve any of your financial problems, pay off any outstanding debts, or you could put the money towards something more exciting instead, such as launching a new marketing campaign. When our businesses are short of cash, we often neglect spending on things such as advertising and marketing, because we think we can manage without it. Whilst it is possible to manage without advertising, it can limit the development of your company in the long-run: a good and high-quality advertisement will help to introduce the business to a large population of people within a short period of time. Advertising is one of the major keys to the survival of a new business, product or service. So if you haven’t got a cash flow issue as such, why not put the extra money available to your business from a merchant cash advance towards a new marketing campaign instead, or giving your business a potentially much needed revamp? 

Stable Funding 

With a merchant cash advance, there should be no nasty surprises when it comes to paying back what you owe because it is offered to you on an interest free basis and a fixed fee is initially agreed upon between you and the lender. Furthermore, the flexible nature of the repayment system should mean you are never be put under too much financial strain, as can sometimes be the case with more traditional types of loans. As such, there should never be any pressure to repay more than your business is currently able to afford, making financial planning nice and simple, and allowing you and your business to come up with a great game plan for future development and its financial growth. 


There are many great benefits that a merchant cash advance can provide you with. It is a quick and easy funding option that is perfectly suited to the vast majority of small business owners, allowing you flexibility, convenience and the extra cash flow needed to keep your business moving forward.

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