How a Merchant Cash Advance Can Boost Your Small Business

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How a Merchant Cash Advance Can Boost Your Small
Business
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The Impact of Using a Merchant Cash Advance
There are both benefits and drawbacks to using a
merchant cash advance for your business. The
impact should be considered before applying for
and receiving funds from a merchant advance.

• No Impact To Credit Score

A merchant advance is not a loan, which means
there will be no mark on your business credit
score or credit history.
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• Fast Access to Capital During Cash Crunch

If your business is facing a liquidity shortage,
a merchant cash advance can be the lump sum of
cash you need to meet urgent business needs. Once
the cash is deposited into your business bank
account, the business cash advance can be used
for your business needs.

• Reliance On Short Term Lending Isnt Sustainable

An MCA is an option for a seasonal business or
one that is experiencing a one-off cash crunch.
Small businesses shouldnt rely on using
short-term borrowing on a regular basis as it can
come with high fees
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• Impacting Future Cash Flow

A merchant cash advance sells future receipts to
a funding provider for upfront cash. This means
that the income from your future sales will be
automatically directed to your funding provider
rather than in your pocket. While this gives you
money now and puts off the worry until later, the
repayment terms could be a financial burden in
the future.

• No Need for Collateral

Because a merchant advance is not a loan, there
is no collateral needed like real estate or
personal assets.
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How To Use MCA Funding
This financing option can be used for a variety
of businesses uses, but it should be considered a
near immediate use as it comes with high costs.
Additionally, it shouldnt be used for larger
expenses, but rather short-term funding
crunches. Here are a few ways business owners
may consider using MCA funding.
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• Purchasing inventory

If youre short on cash and you need to purchase
additional goods, an MCA can get you the funding
you need to keep the business rolling.

• Making payroll

Missing payday is a bad situation for all
parties. An MCA can help a business or startup
shore up liquidity to ensure it can pay its
employees on time.
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• An option for cash-flow volatile businesses

• A small business loan will have set payments
  until the loan is paid off in full. With a
  merchant cash advance, you wont have fixed
  payments. Your payments will go up and down as
  the receipts from your business go up and down.
  This is one reason that this is a better business
  funding option than a business credit card.

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Why Choose Biz2Credit?

• Trusted partner for franchise funding
• Biz2Credit was founded in 2007 and has provided
  more than 10 billion in loans.
• Dedicated support team
• Tailored financing solutions

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Thank You