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Merchant Cash Advance Loan for Cash Wash Businesses

car wash merchant cash advanceAre you looking for capital for your car wash business and not sure where you’re going to get the funding you need? A merchant cash advance may be your solution!

Historically, the first choice for sourcing extra cash for businesses was from a traditional business loan from a bank or lender.

While getting a business loan from a bank remains a viable option today, a merchant cash advance is an alternative source of cash that may be more favorable to certain businesses, especially car washes.

Though technically not a business loan, a merchant cash advance can be thought of as a business loan because the business will receive the funding they need and then re-pay on a monthly basis. However, there are some big differences.

Flexible Payments

Business loans have a fixed repayment schedule, in which the payment is the same each month. The borrower is required to pay at least a specified amount each month until the loan is paid in full.

Merchant cash advance payments are based on a businesses monthly credit card sales volume. The payment will change each month respective of that month’s sales.

Car wash businesses, which often see seasonal fluctuations in sales, benefit from this flexibility. During periods of slow sales, cash flow is not stretched thin by loan payments.

Qualification & Approval Process

With traditional business loans, lenders usually require the borrower to have excellent credit and/or have collateral to back the loan as a measure against the risk of default.

When businesses such as car washes don’t have assets to back the financing, approvals for traditional loans can be difficult to obtain.

With merchant cash advances, car wash owners can still receive the funding they need without having high value assets. And, owners that have bad credit can still receive the funds they need, as the funding is not usually based on credit.

The application and approval process can be quite lengthy for traditional business loans. It’s no secret that extensive paperwork is the nature of the financial industry.

The approval process for merchant cash advances is relatively quick and easy. After completing the application, a merchant can receive the cash they need in just a couple business days.

Terms & Uses

Although terms vary, a merchant cash advance repayment term is usually 24 months. While interests rates on a cash advance are usually higher than a business loan, business loans with lower rates but longer repayment terms can end up costing as much or more over the term of the loan.

When businesses receive funding from a business loan, specific guidelines must be followed with, limiting the business in the use the funds.

A merchant cash advance allows business owners to use the funds for whatever purpose necessary, whether the intent is purchasing supplies or equipment, expanding or opening a new location, or paying off existing debt.

Interested in Merchant Cash Advance?

If you’re interested in learning more about a merchant cash advance for your car wash business, call us during business hours at 888-383-8056. We’d be happy to answer any questions you have.

Or if you’re ready to get started, click ‘Apply Now’ to complete our short application. We’ll reach out to you and let you know exactly what we need from you to get your businesses funding in just a few business days.

 

Apply Now

Call us today @ 888-383-8056