For any small business, the most trying task is to be successful. In most cases, businesses break within the first three years. The small businesses that do last these three years usually end up being prosperous. The secret to these business’ achievments is a steady current of cash in their processes. The faster a company can erase its debt and begin making profit, the better its chances are to survive. Within the past year, smaller businesses are failing because of cash flow issues. There are lower sales across the board, growths in overhead and tighter lending laws that have contributed to the lower sales.

To combat these cash flow issues, it is necessary to find alternative sources of funding. Business credit loans are one choice. These loans are synonymous with merchant advances. These processes of funding are directly affiliated with your business’ credit card sales. One common prerequisite for borrowers is that they have at least three thousand to five thousand dollars in credit card sales per month. Additional standards include having a lease that has at minimum one year left at your current location. This encourages stability with the business because the lender knows it will be in the unchanged location. By staying in the same location, your clientele stays consistent, so there should not be much shift in monthly sales.

If your company meets these requisites, then you are in healthy shape. So what are the advantages of merchant advances? First off, there is no secured repayment schedule. Your repayments are not established off of an interest rate, and you receive unsecured cash promptly. The best characteristic is that you do not have to concern about making your payments because payments are processed automatically whenever you close the credit card batch. The payment is a fixed percentage amount that flows with your daily sales amount. If you have a weak business day, then less money is applied to your account. This can help you make up for slower business days. This is a great way to finance your business if you are looking for an alternative to the traditional bank loan.