Merchant cash advance
A merchant cash advance is like borrowing money from a friend. Imagine you want to buy a toy from the store but you don't have enough money. Your friend gives you the money to buy the toy and you promise to pay them back later, maybe even give them a little more money than they gave you. That's kind of like a merchant cash advance.
When a business needs money for things like buying more inventory or upgrading their equipment, they might not have the cash on hand. So, they can get a merchant cash advance from a finance company. The finance company gives them the money they need and the business promises to pay them back later, plus an extra amount called a fee.
The way they pay the finance company back is by giving them a portion of their daily sales until the loan is paid off. It's kind of like paying back your friend a little bit of money each day until you've paid back what you owe.
Merchant cash advances can be helpful for businesses that need money quickly, but they can also be more expensive than other types of loans because of the fees involved. So, it's important for businesses to make sure they understand all the terms and fees before they decide if a merchant cash advance is the right choice for them.
When a business needs money for things like buying more inventory or upgrading their equipment, they might not have the cash on hand. So, they can get a merchant cash advance from a finance company. The finance company gives them the money they need and the business promises to pay them back later, plus an extra amount called a fee.
The way they pay the finance company back is by giving them a portion of their daily sales until the loan is paid off. It's kind of like paying back your friend a little bit of money each day until you've paid back what you owe.
Merchant cash advances can be helpful for businesses that need money quickly, but they can also be more expensive than other types of loans because of the fees involved. So, it's important for businesses to make sure they understand all the terms and fees before they decide if a merchant cash advance is the right choice for them.