Merchant Cash Advance
Unlike traditional business loans, a merchant cash advance has become a more popular option for small businesses as it helps alleviate financial difficulties quickly, particularly their current cash flow.
It is specifically designed for businesses receiving a lot of credit card or EFTPOS payments. Often, funds are needed on demand to keep up with operating costs, debt payments, and other unexpected expenses to meet certain business goals.
The lender purchases a business’s future cash flow so future transactions are used to repay the borrowed funds, in addition to a fee charged by the lender for the loan product. The lender takes a percentage of each future sale the business makes until the debt is fully repaid.
A merchant cash advance provides more timely funding than traditional business loans.
Minimum eligibility criteria
At Funding Link, we have simplified and streamlined the application process so that any business owner can be eligible for a merchant cash advance:
✔️ Active Australian Business Number (ABN)
✔️ Sales revenue mostly from credit and debit card transactions
✔️ 12 months minimum trading time
✔️ Good credit score
✔️ One to two years of business tax returns
✔️ Recent business bank account statements
Where to use it?
There are a few common reasons why businesses might apply for a merchant cash advance:
1. Inventory Purchases: Businesses experiencing seasonal fluctuations can purchase inventory during downtimes.
2. Equipment Purchases: Businesses can grow and expand as additional funding can help them purchase or lease new equipment.
3. Marketing Expenses: Businesses can use the extra funding to cover marketing expenses like advertising or website development.
The biggest benefit of a merchant cash advance is quickly getting the money in hand needed to keep the business up and running. But is this the right choice for your business? Consider the following benefits:
1. Quick Access to Funds: Gain access to much-needed funds on demand that can be used to address immediate financial needs.
2. Flexible Repayment: Repayment terms are often flexible and based on a percentage of sales, which 2. 3. No Collateral Required: Businesses can access this financing without the need for collateral can be a helpful option for businesses with unpredictable cash flows.
4. Higher Application Approval: Easier and less-strict application process as compared to other traditional loans.
5. Minimal Default Risk: Since money is taken away from sales straightaway, there is a minimal risk of default.
Need a flexible financing option to manage cash flow or cover unexpected expenses? Contact Funding Link now to learn more about other funding options suited to your needs.
Need extra funding on downtimes?
Don't let downtimes threaten your business success. Talk to Funding Link now.