Cash Advance Definition: Fast Cash for Your Business


Jeffrey Bumbales

Small businesses can find themselves in a financial pickle from time to time. It’s normal, and it’s just part and parcel of running a business. Under such circumstances, it really helps to have access to short-term funds to help cover every-day operational costs, such as:

  • Buying new equipment
  • Filling inventory to grow the business
  • Paying off debt
  • Boosting a marketing campaign
  • Capitalizing on opportunities
  • Covering expenses during slower months

Anyone of these reasons can spark the need to borrow money on a short-term basis. In these cases, a merchant cash advance can be a real life-saver.

What is a Merchant Cash Advance?

A merchant cash advance provides small business owners with a specific lump sum of money in exchange for a certain percentage of future credit card sales.

When thinking about cash advances, consider this: you’re not actually borrowing any money, instead, you’re just selling a part of your future revenue.

One of the biggest advantages to this set up is that there are no fixed monthly payments, which means you won’t have to go in the red if you’re having a particularly slow month. Since the repayment terms are based on a percentage of your future credit card sales, the amount that’s garnished is proportionate to the amount of your credit card sales every period.

Let’s say the agreed-upon percentage to be deducted from your credit card sales is set at 10%. If one month you bring in $5,000, you pay $500, and if the next month you bring in $3,000, you pay $300. You still have access to a larger portion of your own revenue with this setup. If your sales plummet one month, for instance, your payments are also lowered to reflect that change. You’ll never be charged more than you earn, unlike a

It’s this benefit that truly separates this type of financing program from a traditional loan.

Why Go The Merchant Cash Advance Route?

More and more small business owners are looking for alternative lending options other than traditional loans from big banks. Here are some big advantages to merchant cash advances:

  • NO up-front fees
  • NO fixed payments
  • NO credit checks
  • NO collateral
  • NO late fees
  • NO restrictions on the use of funds
  • NO long waiting periods for loan approval

And possibly the biggest advantage? The funds are available in as little as 48 hours! You won’t find many financing options that can match the speed and convenience of a Credibly merchant cash advance. After all, you simply cannot afford to sit around waiting for the banks to approve your loan and deposit your money. When you need cash to cover expenses, you need it now.

When the banks let you down, delivers. We provide you with the short-term merchant cash advance that’ll allow you to focus on your business instead of your financing lines. Fund and invest in the growth of your business in a fraction of the time that it would take through conventional avenues.

Our financing options are easy, fast, and flexible. Simply fill out our one-page, online prequalification form, choose your financing option, and get funded in as little as 48 hours! It really is that easy!