What is a merchant cash advance and how does it work?

Are you looking for a quick and easy funding option that can help you and your business? I bet that you have looked around at different types of funding by now and may have heard about merchant cash advance.

A merchant cash advance is a great alternative funding for small businesses. It is a fast and easy approach for small businesses to get funding immediately. But how does it work and how can this type of funding benefit your business? We got that covered in this article.

A merchant cash advance is different from most types of funding because it provides businesses with funds in exchange for a percentage of the business’s earnings that are coming from the business's credit card transactions. One of the good things about a merchant cash advance is how you can pay back the borrowed amount. The usual terms or setup for repayment are made daily and you can pay more on good days too speed up the term.

Also, the application process for a merchant cash advance is usually approved within a day and has a very high approval rate. The availability of the funding is also usually quick, some have it within one to two days. Unlike other types of loans, a merchant cash advance is common to not require collateral.