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What is a merchant cash advance?A merchant cash advance is an alternative to a traditional small business loan. Rather than looking at your credit history to determine whether or not you are qualified for a loan, a business cash advance looks at a 4 month record of your sales to determine an amount, and then purchases a portion of your future credit card sales at a discounted rate. Rather than paying back a fixed amount each month, a merchant cash advance service automatically takes a small percentage of your daily credit card sales until the balance is paid off. This is particularly beneficial because when your sales are slow, you pay back less, creating a uniquely flexible payback schedule. Traditional small business loans require security (collateral), good credit and a long business history. These requirements make it difficult for newer businesses and business owners to get a traditional business loan. Merchant cash advances streamline the process by eliminating the need for collateral or a great credit score. Even those with a less than a perfect credit history can still qualify for a business cash advance. How does a merchant cash advance work?
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