There will be benefits and disadvantages to every type of business loan and business funding source regardless of the type you decide to go with. There is no one size fits all funding source out there that is best. There is however a best solution for YOUR needs. If your business does not have a lot of monthly credit card sales a merchant cash advance will probably not be your best option. If your business has high accounts receivables perhaps an ACH Loan will be your best option. If you currently have several loans and are looking for funding to pay back these loans perhaps a Debt Consolidation Loan would best suit your needs. Finding a loan or funding source can be a difficult and stressful process. Try to keep in mind that among the dozens of funding options and hundreds if not thousands of banks and funding companies in existence, there is a best option out there. You just need to find it.
If you have researched merchant cash advances and feel that this could be the best source of funding for your business, take a few minutes and look over the following benefits and drawbacks associated with them.
Pro’s of Merchant Cash Advances
- Bad credit may not affect approval process
- No upfront collateral needed
- Quick access to funds
- Simple approval process
- Suitable for a wide range of business purposes
- No interest so amount owed never increases
- No late fees
Con’s of Merchant Cash Advances
- Higher fees than a traditional bank loan
- May represent only a short-term solution
- Deduction of credit card receipts on daily basis
- Less flexibility to change merchant service providers
- Often chosen over better alternatives
A Small Leader in Business Lending
CapitalFront was launched with a simple premise – create an easy, accessible and rapid process for small and mid-size businesses to fund their growth. CapitalFront strives to bring a wide array of financial products, including merchant cash advance, receivable financing, factoring, SBA lending and fixed rate term solutions, to independent business owners nationwide. Call today or fill out our online application.