Merchant Cash Advances can make sense, but you need to do the due diligence to know when it makes sense for you.  Take for instance, the following example of how a Merchant Cash Advance made a difference for this merchant:

Tom was stuck.  He had pulled together a $550,000 investment of his own and another $350,000 from his partners.  He felt he had the financing set for his new restaurant.  Unfortunately, the construction costs ran over, by $50,000.  Though it is almost a cliché for construction delays and costs to run over the budget you set, no one can help when material prices change, or construction crews run into new issues to resolve.  Meanwhile, Tom opened up still short of $50,000, and felt it.  Money was already tight, and he needed a loan to properly run the restaurant and to succeed.  He applied for a small business loan, but he needed a longer track record to qualify, and then it would be four to five weeks to process and close that loan.  The Merchant Cash Advance could get Tom money in days.

Now it was time for Tom to crunch the numbers.  He knew what sales had been for the past six months and he saw what he could reasonably expect for the next several months.  Tom had to make sure that he could repay the cash advance, and keep up with his other obligations.  He felt he could afford the numbers, and closed on the Merchant Cash Advance (MCA).

Tom needed the money to operate.  He knew the numbers were tight, but not as tight as his numbers had been with the start up shortage.  Even with fees and costs, the merchant cash advance gave Tom the funds he needed to operate the restaurant and survive. 

Tom still proceeded with his bank loan application and repaid the balance of the MCA out of the loan proceeds.  He still feels he got that far because the MCA allowed him the funds, he knew he needed to operate until he could obtain the bank loan.  For Tom, it was expensive, but made sense.  It was far less expensive than risking his new business that he had invested all his funds into. Talk to today to find the right solution for you.