Merchant cash advance can be set up quickly with funds straight into your account, commonly 2-3 days from enquiry. It can act as a fast, flexible affordable way of raising capital as required. Repayments are predominantly based on a fixed percentage of the transactions that go through the card machine. This is because as the business fluctuates so does the amount of repayments. This allows the business to stay in control of how much they are paying back each month. Unlike many other forms of finance, the repayments alter with the business.
Businesses in the hospitality industry can be very seasonal throughout the year. Often hospitality businesses experience strains on cash-flow with fluctuating stock levels, wages, and daily running costs. A merchant cash advance loan can ease this burden on cash-flow. It suits these circumstances, as it allows for an initial payment to the business. Following this, the repayments are taken out daily reducing the strain on cash-flow whilst giving the business the financial support it requires.