What is a Merchant Capital Advance?

If you are looking for ways to secure a reliable source of funding for your small business, then chances are you’ve come across the term “merchant capital advance” while researching funding options online.

Merchant capital advances are sometimes described as being similar to bank loans, but the reality is that merchant capital advances are a distinct kind of financial service that differs from traditional loans in some key ways.

Unlocking the funding potential of a merchant capital advance can be transformative for small businesses struggling to attract funding interest, so if you are looking for new funding partners for your business, merchant capital advances are one of the first options you should explore.


Alternative Funding for the Twenty-First Century

For most of recent history, banks have played a central role in providing funding to businesspeople who have potentially lucrative ideas but cannot realize them without capital.

But banks are also bound by complicated regulations, and aren’t always willing to offer small loans that aren’t going to deliver a high return. This can leave some small businesses without any affordable ways of attracting capital. In some cases, businesses are even driven to put debt on high-interest credit cards.

Merchant capital advances offer a tranche of funding that is available at a set price. The cost of unlocking this tranche is paid in regular instalments (you can stop by SharpShooter Funding to learn more about how this works), ensuring that the financial burden is manageable and businesses aren’t saddled with a lump-sum repayment down the road.  

One of the reasons why merchant capital advances are so appealing is that they offer greater flexibility and more manoeuvring room for companies that have a lot of growth potential but may not have enough of a proven track record to receive an affordable line of credit from a bank.

How Merchant Capital Advances Help Small Businesses

The advantages of this funding option for small businesses are numerous. Not only do merchant capital advances make it significantly easier for small businesses to secure much-needed funding in the first place, they also make this funding available quickly and seamlessly.

Unlike banks, which have relatively restrictive operating hours and tend to take longer to process applications and require more documentation in order to clear an application for funding, companies that provide merchant capital advances generally offer quick turnarounds and simple application forms.

Depending on what kind of business you operate and where it is based, you may even be able to have your application turned around within a single twenty-four hour period.

This makes merchant capital advances the perfect option for companies that need an emergency injection of capital in order to meet financial obligations or take advantage of exciting investment opportunities.

If you think a merchant capital advance may be the right option for your company, find out which financial service providers in your region offer merchant capital advances, and fill out an application today. You may be surprised at how easy it is to get funded!