Who Should Use Merchant Advances or Factoring Services?
Certain businesses can benefit greatly from obtaining a merchant cash advance or using a factoring service. The type of financing you should seek depends on your industry and business practices. You should consider seeking a cash advance if your business: • Needs an immediate cash infusion, but is unable to obtain conventional financing at a favorable rate. Cash advances are typically easier to qualify for and quicker to obtain than traditional business loans. • Is seeking flexible repayment terms. Terms in a cash advance agreement are generally more flexible and open to renegotiation than those of a traditional loan, and are typically paid back quickly. • Is currently unable to take on additional credit obligations. A business cash advance is not a loan, so it will not be reflected on your credit report. • Has a steady volume of monthly credit card sales, with sales projected to remain stable or increase. Most providers require that a business must maintain steady sales to avoid “defa
