Business Cash Advance Pros and Cons
As with any situation, there are both pros and cons that come along with the business cash advance. It is up to you, the small business owner, to weigh the costs and the benefits, and determine whether a business cash advance would be beneficial to your business.
| Pros | Cons |
|---|---|
| High approval rate | Expensive money |
| No collateral | Not for non-merchants |
| No restrictions | |
| 24 hour renewals | |
| No fixed monthly payments |
Explanation of Pros
High Approval Rate: Due to our minimal requirements, many of the small business owners that apply for a business cash advance are approved. In fact, we have a 90% approval rate for franchises.
No Collateral: The business cash advance is completely unsecured. Small business owners can receive funds without providing collateral, unlike other methods of business financing.
No Restrictions: Funds can be used however the borrower chooses. MRI lets merchants determine what is best for their businesses. They may then use their funds to finance these endeavors.
24 Hour Renewals: After receiving a business cash advance, borrowers can renew funds once they’ve reached at least 60% repayment completion. The renewal process requires no additional applications and there is no limit to the number of times that a borrower can renew his/her business cash advance.
No Fixed Monthly Payments: Business cash advance repayments go with the flow of business. If a business has a slow month, payments are lower, making the payback virtually unfelt.
Explanation of Cons
Expensive money: In comparison to a bank loan, the business cash advance is expensive. That is why it is considered a small business loan alternative. The business cash advance is not for those who qualify to receive bank loans.
Not for non-merchants: Small business owners who do not operate retail and/or service-oriented businesses are not eligible for business cash advances. This is because, typically, they do not process daily credit card sales, an essential requisite for business cash advance eligibility.