Businesses go through periods when they make a lot of money and other times when they are just dead quiet. Many are not able to save for these times when sales are down and end up having to borrow funds to stay afloat. Banks can loan money to small businesses with a pledge of collateral to secure the loan and eliminate the risk of default. If need be, the bank can sell the pledged asset to get some of its money back, but not all businesses want to take that risk and would rather get an advance on future sales, that way, they do not have to worry as much about defaulting, although that would ruin their business.

Merchant cash advances are perfect for businesses that have credit card sales. They can assign a certain percentage of these sales to the merchant cash advance company through their credit card processing system. This way, they can slowly chip away at their debt and not even realize how much they are paying it back. They can continue to do business all the while paying back their debts from the advance. The overall procedure to obtain an advance is much easier than a bank loan and you can be approved in 24 hours from submitting your application. Traditional credit checks are not necessary as they rely on the functioning of your company to determine your eligibility, but you will need a certain minimum dollar amount of credit card transactions and a solid history.

With an advance like this, you can expand your business by buying new properties or machinery and slowly pay them back over time. Since there are no fixed payments like that of a loan, you will not be overwhelmed with the amount of the payment as it can be adjusted to your needs. You will pay some fees for this great business tool, but you will also eliminate the need to decide between paying your bills or your employees, which can eliminate the stress of running a business.

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