When a small business is just starting up, or even if they’ve been operating for several years, money is likely pretty tight. There are actions that could be taken to help the business, maybe buying some new machinery, or doing some more advertising, but at this point there is simply not enough money in the budget to do so.
However, all hope is not lost. Fortunately, there are merchant cash advance companies that can offer easy cash advances to small businesses that need them. Cash advance merchant services are when the merchant cash advance lenders loan a large sum of money, in exchange for an agreed-upon percentage of future credit and/or debit card sales.
Merchant cash advance companies don’t necessarily always make their money back through credit or debit card sales. That was originally the case, but now it can mean any kind of financing option that involves short payment terms (less than 24 months) and small regular payments (typically each business day).
Merchant cash advances are not loans — they are a sale of a portion of future credit and/or debit card sales. Because of this, merchant cash advance companies claim that they are not bound by state usury laws which limit tenders from charging high interest rates. This technicality allows them to operate in a largely unregulated market and charge much higher interest rates than banks.[
So if you are a small business that needs a little bit of extra money to grow, merchant cash advance companies can provide you with that money, with a reasonable repayment plan. Don’t let your business suffer because you don’t yet have the money to help it grow. This is a common problem with small businesses, which is why the merchant cash advance industry was created. See this reference for more.