Being a business owner is a tough job. At a certain point, you might find yourself in lack of funds. Don’t forget that your clients might be late with their invoices so that the cash flow will be disturbed and you can’t make significant payments. In these cases, business owners usually rely on merchant cash advance to fix the problem. You can read more about the pros and cons here.
What is a merchant cash advance?
Merchant cash advance makes it easier for small business owners to get a loan. You receive a lump sum and are expected to make payments according to your workflow. The payments are in the form of a percentage of the daily transactions, so you get to pay proportionate to your turnover. When you earn more, you will quickly pay off the debt. When the workflow is low, you pay less.
There is no need to fulfil specific criteria nor waste time on paperwork. This is a quick way to inject cash to your business operations and maintain the balance. However, this is one of the most expensive ways to get funds.