No matter how big or small your business is, you can sense the need of emergency fund at any point of time. However, business owners often find it very difficult to get a source from where they can avail the fund required for their business and most of time they become helpless.
A merchant fund advance can be the best option one should opt for in such a situation, as it allows a business owner to access cash in quick time. However, the most important thing about the merchant fund is that it is easy to obtain and there will be no need to submit the report of your financial health or credit history. In this article, you will have a closer insight into the concept of merchant fund and you will be able to know how it helps your business to grow.
Why You Should Prefer Merchant Fund
If you have found your business capital much lower than what you need to run your business operation quickly and do not want to follow strict terms and conditions of a traditional business loan, then you should prefer merchant fund that will allow you to access instant cash in a friendly way. Here are some notable advantages of merchant cash advance.
- There is no need to submit a stellar credit history
- It is cash-flow-friendly
- You will not have to write checks, as the remittances are automatic
- You can avoid fixed monthly payment in tough times and there will be no set maturity date in the process
- It is easy and faster than availing a traditional loan
How Merchant Cash Advance Can Help Your Business
If you are trying to avail fund to set up a new business or developing your existing one, the option of incurring merchant fund will definitely help you in achieving your target. Here are the situations, where merchant fund can help you a lot.
You may need to buy or replace several types of equipment such as computers, telephones, machinery or vehicles to keep your business operational. However, if you do not have sufficient fund to purchase important equipment, you can apply for a merchant fund advance for instant cash flow with friendly terms and conditions.
Covering Payroll of Your Employees
It is not possible for your business to make a profit in every month of a year or you may find that your customers have not made credit payments cleared yet. However, whatever the condition is, you still have to pay your employees, otherwise, you may find them less productive.
In such a situation, you can opt for a plan from merchant fund that will help you in covering payroll for your employees.
Help to Promote Your Business Efficiently
In order to expand your business and your customer base, you will have to promote your business efficiently, which is an expensive process. However, by taking the advantage of business fund advance, you can cover all the costs of advertising conveniently.
Meeting Tax Obligations
If you are running a business, you will have to be well aware of the taxation process. No matter whether your business is making profit or loss, you will have to pay tax at the end of the year. However, if you have not prepared any plan for tax yet, then you should approach for merchant fund that can help you in meeting the tax obligations and avoiding penalties.
However, a merchant fund advance is not a type of traditional loan. In this process, the fund provider deducts a certain amount of cash from future debit and credit card sales of your business with discount.
Author Bio – Jonathan Rodrigo is a financial advisor, working for a reputed financial institution. Apart from this profession, the author independently writes blogs on capital management including merchant cash advance.