Every business needs capital to survive; both small, medium, and large scale businesses. While it may be somewhat easier for medium to large scale business owners to secure loans from banks and other typical lenders, small business owners usually struggle to access the capital their business so much need. These businesses don’t have the credentials to prove themselves creditworthy in the eyes of banks and traditional lenders.

If you are a small business owner and have been denied business loans by your bank there is still a way for you to get the capital that your business so much need. It is time you try the merchant cash advance option. A cash advance gives you access to much-needed funds without having to endure the strict approval process synonymous with banks and typical lending institutions. Below are five major benefits of cash advance in Delaware and why it may be the best financing option for your company;

1. Quick funding:

Timing is very essential for any business. Timing can make the difference between a successful and a struggling business. When you apply for a cash advance in Delaware it won’t take more than a week to have the money deposited into your account. Having an improved cash flow is something every business needs to survive. For example, perhaps you need a new company vehicle and a car dealership is running a promotion. In this instance, you will need access to easy and quick funding to make the purchase. A cash advance is the best way you can receive a huge amount.

Popular lenders across Delaware

2. No need of impeccable credit:

Your chances of getting approved for merchant cash advance in Delaware is appreciably higher than for a loan or credit cards, in some cases. The process of applying for the loan is simple and it can easily be done online. It is not highly dependent on your credit score, you could still qualify regardless of your less-than-stellar credit score. The requirement majority of lenders require is that applicants make a certain amount in their business credit card sales each month. This information gives the lender the assurance that you have the capacity and will be able to repay the advance responsibly. A cash advance in Delaware is, therefore, a viable option if you have a business that makes regular credit card sales.

3. No set payment amount:

A merchant cash advance does not work like a loan. When you receive a merchant cash advance in Delaware you won’t be given a set repayment term either is there a set monthly payment. When you get a merchant cash advance, you are simply agreeing to an exchange between a huge sum of cash and a certain amount of the future credit card sales from your business. So for your merchant cash advance, you are not borrowing money rather it is a form of sale of some of your future profits. This is much more comfortable for a small business as they are just starting to get their footing in the business terrain. So for months that they make slow sales they will only have to remit small amount and for months that sales are booming, the reverse will be the case.

4. No restriction on sales:

Business loans typically come with restrictions on how the money is to be spent. For example, an SBA Microloans cannot be spent on paying a debt or buying real estate, also the Small Business Administration 504 loan program is not permitted to be spent on inventory. When you consider all these spending restrictions, it may be difficult to arrive at a particular funding source that fulfills all your needs.

This explains why merchant cash advances are so much sought after and popular. When you receive a cash advance in Delaware from a lender you are free to spend it however you like. For example, if you got an advance of $10,000 you can choose to spend $7000 on debt and use the remaining $3000 to set up a new marketing campaign. The flexibility that merchant cash advance offers can be quite beneficial to your business as you may need to spend your cash for a few different costs.

5. No risk to your asset or credit rating:

Aside from the usage restrictions, most other types of business financing tend to put your financial health on the line. Most times in order to get approval, you may need to have a high credit score, significant collateral or a history of good business behavior. After funding, you will be required to repay a specified amount each month. Failure to make timely repayment could result in financial or legal repercussions.

When it comes to merchant cash advance you need not put your asset on the line. A cash advance is a sale of future revenues, which means you have no need to prove your worth with a 750-credit score. You won’t have to worry about the lender seizing your asset since what you remit is dependent on your credit card sales each month.

It is important that you consider the benefits before you go ahead to apply for a merchant cash advance in Delaware. This form of an advance, although it comes with numerous benefits particularly for businesses that don’t qualify for traditional financing option, may not be the right choice for every business.

If you do not have a stellar credit history or haven’t been in operation for long, then a cash advance may be the only or best source of funding.