Opening a new business can make a new business owner feel liberated. The freedom of being your own boss paired with the excitement of doing something you’re passionate about can produce an inexplicable emotion. But discovering you need more money for a business venture than initially thought is a common realization for new business owners. All the planning and budgeting in the world can’t stop surprises and unexpected costs from popping up. When this happens, the feelings of liberty and independence can quickly turn into those of confinement and vulnerability.

Retail and service-oriented businesses have to deal with the costs of equipment, maintenance, payroll, and inventory along with countless other costly things that make starting a business such a difficult process.

If we lived in a perfect world where money grew on trees and flowed freely from water falls, there would be no problem (besides the inflation rate). But unfortunately, finding funds for a new business can be harder than finding Waldo on a children’s book page. As a result, traditional methods of business financing often leave new business owners with a monetary deficit.

Though a merchant cash advance can not be used to open a start-up, it can serve a healthy helping of working capital to new businesses that have been in existence for at least four months.

If you’ve just opened your business, and you’ve noticed that a few extra dollars could do a world of difference, a merchant cash advance might be the perfect route for you. If your business has processed a minimum of $2,500 per month in its short life-time, a merchant cash advance is not out of reach.

New business owners often find it harder to receive bank loans because they have not yet demonstrated a proven ability to run a business and successfully manage business funds. But what sets merchant cash advances aside from bank loans is lenders don’t provide funds based on the borrower’s past. A business’s actual monthly credit card sales determine how much money a borrower can receive.

When a new business owner receives his/her merchant cash advance, he/she is selling the business’s future credit card sales for an upfront sum. Once they receive the advance, a small percentage is deducted from the business’s daily credit card sales until the advance repayment has reached completion.

This process is hassle free, stress free, and an easy way for new business owners to get the extra funds they need to cover unforeseen costs. Let a merchant cash advance put the joy back into your new business.

Raising sufficient working capital is an essential requirement for any business start-up. Moreover running a small business often calls for the need of a financial boost at times of crisis. The business cash flow can be disrupted due to various unforeseen reasons. Payment of dues, purchase of new equipment or starting new business venture might cause additional disruption in cash flow particularly of a small business. There are plenty of options for choosing the right service to acquire this capital, and this process could be quite confusing. The mode of financing is an important element that determines the success of the organization and thus an exhaustive understanding of the available funding options is almost mandatory.

Business cash advance is one of the most popular modes of acquiring essential business finance. It is almost similar to a payday loan. However, payday loan requires an individual to provide proof of employment and salary whereas business cash advance is perfect for an entrepreneur to get funds when he lacks perfect credit or doesn’t have the ability to get funds by other means. The only requirement of business cash advance is that the business should accept credit transactions, i.e. it should allow it’s customers to pay with visa or master cards. It is just an advance and not a loan; hence every time the business receives a payment, a part of it is automatically forwarded to meet the repayment of advance.

Working capital loan, another great way of acquiring funds is the traditional and most commonly followed method by most small business. However, it is not as easy to get funded in this mode as compared to business cash advance. Working capital loan is difficult to qualify for when compared with business cash advance as an alternative source for working capital financing. The credit score of the borrower, the available collateral and various factors are carefully considered before acceptance of working capital loan. However, most small businesses would easily qualify for a business cash advance.

Getting a working capital loan involves a lot of paperwork and quite some time. However, it is not the same for business cash advance. Business cash advance is processed much faster and it involves relatively less paperwork, thus simplifying the process of working capital financing. Moreover a business cash advance does not have a fixed repayment schedule as the case is with working capital loan. The repayment is done from credit card sales receipts and the businesses generally do not feel the pinch. However in case of working capital loan, if the borrower fails to repay the working capital loan, it might not only affect his credit score but also poses a threat of losing his collateral. Irrespective of the business volume on a particular month the borrower will need to repay the working capital loan according to the pre determined fixed amount.

Considering all these, it could be well concluded that a business cash advance is much easier option for an entrepreneur to acquire working capital financing.