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Merchant Cash Advance – A Simpler Way Of Funding Your Business

By Daniel Samoohi

A merchant cash advance is an unsecured advance of working capital on revenues a business will realize in the short term, commonly offered by private investors. Not like the typical loan, this one is secured against future credit card revenues and involves much less paperwork than a normal small business loan attained from the bank. Ideal for merchants that don’t have several years of work history on their resumes, a merchant account loan provides desired funds fast.

Banks review five characteristics when coming to the decision whether to provide a business loan. These characteristics, called “the five Cs,” are as follows: character, capacity, collateral, capital and conditions. As normal loans are only provided to those entrepreneurs with excellent credit and a verified record, it is understandable that a lot of merchants simply do not cut it.

The qualifications for a merchant cash advance are less tough, and payment terms are likewise more loose. Repayment is tied directly to the credit card receivables taken in on a daily basis. However, the entrepreneur should use a bit of patience when looking for such funding.

While a trustworthy merchant loan provider will provide the necessary funding at a decent price, some will attempt to charge ridiculous interest, require up front fees and have unreasonable default terms. Reading the fine print is necessary.

While many business consultants will suggest that finding working capital from family and friends, credit cards and personal savings are better choices, they are not very realistic. Additionally, it can take time to attain such working capital, and it really is best not to do business with family and friends. Turn around time on this type of funds is usually under a week, and with no fixed payment terms, a merchant account loan is a good way to acquire financing quickly without involving additional people.

Dating back to early 2008 Daniel Samoohi has aided 1000′s of business owners in finding credible providers in order to compare offers for a merchant cash advance. By making providers compete with each other, Daniel assists businesses in finding great deals for a merchant cash advance.

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Article Citation
MLA Style Citation:
Samoohi, Daniel "Merchant Cash Advance – A Simpler Way Of Funding Your Business." Merchant Cash Advance – A Simpler Way Of Funding Your Business. 25 Aug. 2010. 12 Apr 2015 <>.

APA Style Citation:
Samoohi, D (2010, August 25). Merchant Cash Advance – A Simpler Way Of Funding Your Business. Retrieved April 12, 2015, from

Chicago Style Citation:
Samoohi, Daniel "Merchant Cash Advance – A Simpler Way Of Funding Your Business"

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