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How do merchant cash advances differ from business loans?

April 26, 2017Business cash advances differ Loans merchant

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How do merchant cash advances differ from business loans?

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Merchant cash advances are based on merchants’ future credit card transactions. Unlike traditional loan programs, a cash advance is totally unsecured (does not require collateral or a personal guarantee). The program is available to party store businesses with good or bad credit. Because the merchant cash advance is based on future credit card receivables, a good credit score is not required to be approved. Unlike loans, applying for a merchant cash advance takes literally minutes and approval is typically done within 24 hours.