Does Merchant Cash Advance Help In Business?

October 4, 2018

Anyone who owns a business however big or small it might be, they know that at any moment they might be in need of a buck load of cash. It can happen at any point in your business venture but usually it happens at the start up point because that is when you have th least amount of money to be very honest. Starting up a business is not always easy and in such situations you might ask, what is merchant cash advance? Loans can get a little overwhelming for just anyone and if you are at the start up point of your business it is applicable more so for you. Merchant cash is one of those many loaning options but it might be a little more feasible. This article is made for clearing up that confusion.

what is merchant cash advance

What Is It?

This is basically selling what you might receive in the future for a loan of money and it can be anything like credit and debit card receipts.  The most beneficiary of them all happen to be independent restaurants and retailers.

Now that you know what is merchant cash advance there are certain things that you might be asked to agree to if you want to avail of this type of loan.

  1. You have to agree on the sum of money that you want to receive.
  2. The factor rate or the amount of money that the lender has to be paid attend is something that you must agree to.
  3. The retrieval rate or the money that you will pay every month to the lender is also something that you have to agree upon.

Terms And Conditions?

As all the information above is to describe to what is merchant cash advance you must have realized that with such transactions, certain terms are to be expected. The structure of payment will fluctuate with the receipts of your credit and will not be based on time. Although there is a given time period of four to eighteen months, within which a lot of the money is paid back it might not always be followed. The rate of the retrieval will vary between five to fifteen percent.

Prosmerchant cash advance

The given data above must have cleared lot of your questions regarding what is merchant cash advance and now it is time to weigh the pros. The approval rate is the best thing about this loans as most businesses are approved and eligible to avail it. The documents required are very few and it is usually a smooth sailing process. The credit scores too need not be too high and you will not be held responsible if bankruptcy occurs.


The interest rates are as high as 80% so it is advisable to think before you venture into a commitment like this one. You can actually be left worse off after you pay back the loans.

So now you know, what is merchant cash advance and you can also measure the pros and cons for yourself. If you find there are more pros than cons in your list then do not be afraid to go for it. Know more about cash advance loans in Canada here!