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 selling merchant services over the phone 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.