Small businesses have unique financial needs that are nearly impossible to satisfy with the terms and conditions associated with traditional loans. However, merchant cash advances offer emerging business the opportunity to acquire much-needed funds in a way that considers these distinct needs and respects them as the growth and development process proceeds. For those who are new to owning a business, these benefits might not seem immediately apparent. Discovering what merchant cash advances can offer a new business is certainly something which any business owner should do before committing to any financial agreement that will impact the future of their business.


Compared to other financial options, the qualifications for small businesses applying for merchant cash advances are fairly loose. Normally, the merchant in question will wish to run a routine check on the credit and financial history of the owner and business in question. This leniency is possible because this sort of investment is largely low-risk for the lender. The lack of strict processes means that a business owner can have the needed cash in hand more quickly in order to pursue opportunities for growth and development when it’s the most crucial.

Financial Impact

The impact on the finances of small businesses that choose to use merchant cash advances are minimal. While supplying much-needed funds, the unique repayment plan associated with these loans ensures that the existing cash flow of the business in question is left intact. By pulling repayments from the pool of profits generated by credit and debit transactions over the course of any business day, the merchant avoids charging monthly payments and unreasonable interest rates. Furthermore, the merchant only pulls a small agreed-upon percentage of these transactions, meaning that the majority of the profits are left to help the business move forward and establish itself within its community and build a stable financial base. This method can, unfortunately, cost more in the long run, but offers small business owners the assistance that they need quickly and with reasonable repayment expectations over time, and are much easier to obtain than other traditional loans from banks or other third party lenders.

For the owners of small businesses, the options for financial assistance can seem slim, and can oftentimes appear to do more harm than good to the development of the business in question. Merchant cash advances offer an invaluable alternative to these loans, and present benefits for owners that are tailored specifically to the needs of emerging businesses in order to help them become a household name in no time.