10. Merchant cash advances

A merchant cash advance is the opposite of a small business loan in terms of affordability and structure. While this is a quick way to obtain capital, cash advances should be a last resort because of their high expense. Many of the top merchant services offer this option, so check with your provider to see if this could be a form of capital to explore

„A merchant cash advance is where a financial provider extends a lump-sum amount of financing and then buys the rights to a portion of your credit and debit card sales,“ said Priyanka Prakash, lending and credit expert at Fundera. „Every time the merchant processes a credit or debit card sale, the provider takes a small cut of the sale until the advance is paid back.“

Prakash says that while this appears to be convenient, cash advances can be very expensive and troublesome to your company’s cash flow. (mehr …)