Differences between a Merchant Cash Advance and a Bank Loan
Through bank loans and Merchant Cash Advances are both useful and valuable business funding methods, they differ in many ways.
Repayment
Instead of making fixed monthly payments, merchant cash advance borrowers have a small percentage of their business’s daily credit card sales automatically deducted and used to pay down the merchant cash advance.
Requirements
There are only four main requirements for merchant cash advance eligibility and they are very easy to meet. This makes the merchant cash advance a possible means of acquiring business funds for a wider range of merchants.
Speed
Merchant cash advance providers can approve applications in only 48 hours and fund accounts in as little as five business days. Merchants who renew their accounts can be funded in as little as 24 hours.
