A merchant cash advance is a type of alternative financing that uses future credit card sales to provide businesses with a lump sum of immediate capital. It’s not a loan, and it doesn’t have an impact on your credit rating. Instead, MCAs can be a way of trading long-term capital for instant funding when you need it. What are the advantages of this type of financing for small business owners?

1. Helping You Take Advantage of Business Opportunities

Sometimes business owners face a dilemma. They may see an amazing opportunity for profits but lack the capital needed to invest. For example, construction companies may have the opportunity to work on a lucrative project that is larger than normal. To successfully complete it, they may have to hire additional staff temporarily. How can they finance these immediate costs in expectation of the big payoff at the end of the project? A merchant cash advance can help.

This same principle applies to any business going into periods of increased activity. MCAs help you make payroll for increased employees, buy inventory at better rates or adapt to busy seasons.

2. Creating Healthy Cash Flow for Expansion

Expanding your business is a great idea, but it often requires immediate funding. You need money to pay general contractors to expand warehouse space, for example. Expansion often involves immediate payment to generate future profits. MCAs deliver capital up front when you need it. They’re a helpful tool that adapts to your needs.

3. Delivering Financing Quickly

Another advantage of MCAs is the length of time it takes to get approved. With traditional bank loans, getting financing can take weeks or months as your business is reviewed. MCAs are usually ready to go in a few days or less. Once you’re approved, you can use the same service in the future with even faster results.

4. Giving Your Business Support During Emergencies

If you’re looking for a way to prepare for business emergencies, an MCA can be an excellent option to supplement tools such as business lines of credit. You don’t have to take on debt to face unexpected problems. Instead, take care of payroll, taxes, rent and other sudden needs to keep your business running strong no matter what.

There are many ways to keep your business financially healthy and sustain an excellent cash flow. A merchant cash advance is a popular, trustworthy and safe option for giving your company an infusion of capital right when you need it.