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CFA NewsroomBusiness FundingNewsWhy is a Merchant Cash Advance better than a Bank Loan?

Why is a Merchant Cash Advance better than a Bank Loan?

Why is a Merchant Cash Advance better than a Bank Loan?

When receiving a bank loan, you will have to be paying it back in fixed monthly payments over a set period, whereas, when receiving a cash advance, you payback only a small percentage of your daily card takings. This can be very helpful to many businesses as some months they may not have as many card sales as they have done in previous months. On the other hand, if your business does well during the month, you can make larger payments and pay-off the cash advance faster.

What are some of the advantages for getting a Merchant Cash Advance?

High approval rates

One of the main advantages of a merchant cash advance is that you will almost certainly be guaranteed to be approved as long as you don’t have any adverse credit history. Bank loans on the other hand can be difficult to acquire and onerous, usually requiring a business plan and in most cases, collateral is needed to secure the loan, none of these are needed when taking out a cash advance!

No Hidden Fees or Interest

Unlike a traditional bank loan, there are no hidden charges, interest fees or APR to worry about, this means that everything is included in an agreed fixed cost and added to the cash advanced amount. Bank loans often come with interest rates and fixed payment amounts each month. If your business under performs one month or you just do not have the money to make the payment, the bank will not reduce the amount of your payment or adjust the amount of interest you must pay.

Approved Within 48 Hours

One of the main reasons a cash advance can greatly benefit your business is the speed at which working capital available can be made available for you to use to improve your business. Most cash advance applications are approved within 48 hours and funding is usually received by the client within 5-7 working days. These funds can be used for any business improvement, renovations, purchasing capital goods or simply to help with business cash flow!

If you would like more information on a cash advance for your business please visit or call us on 01491 526 565