The main advantage of merchant cash advances specifically is that once they’re set up, they require very little oversight opublikowano Maj 1, 2022

Can carry less risk – As the repayments are automatically taken from the money you receive from customer card payments, there can be less risk of ‘defaulting’ on your loan and incurring fees such as penalty charges than with other types of business finance.

Transparency – The total amount you pay back doesn’t change – the lender will tell you what the total cost is when you take out the cash advance.

Merchant cash advances

Merchant cash advances are by far the most common form of business cash advance, because the payments technology makes it very straightforward to track. They’re designed specifically for merchants – in other words, businesses that take payment using a card machine – and the lender works with your payments provider to be directly involved with each transaction.

The advance amount is usually based on your average month’s turnover, so the lender will want to see your last few months of card sales. As with the example above, you’ll have an advance amount and an agreed repayment percentage.

There’s no monthly repayment to worry about, because every single transaction pays down the debt, and you’ll know the total cost from the beginning.

Business owners often find that the repayments feel painless too, because rather than putting money aside you just carry on as normal, and the advance is automatically repaid. (więcej…)