What is a Business Cash Advance?

A business cash advance is an alternative to a business loan that is favored by many small businesses that take credit cards. It is also known as a merchant cash advance, and is paid back through a portion of future credit card sales. This popular alternative to the traditional small business loan has been around since the 1950s, when it was known more commonly as receivables financing. It is far easier to qualify for a business cash advance than a traditional loan, where personal and business credit is heavily scrutinized. Many small businesses rely on this type of advance to help raise capital and get the funding they need right away. The money advanced can be used for purchasing equipment and supplies, or even paying taxes.