When times get tough and your profits start to vary from month to month, you’re going to need access to cash to keep your business up and running. For many businesses, this means taking out a loan to help get through those lean times. However, for newer business owners or less established companies, traditional loans aren’t an option. A merchant cash advance (MCA) gives you the chance to get the money you need without having to apply for a loan. Here are a few great benefits of this type of financing.

1. Fast Approval Times

When you apply for a business loan, you won’t get the money you need quickly. In fact, it can take several months for lenders to process your application let alone render a decision. When you apply for an MCA, lenders process your application much faster. This means you’ll get your answer and your money much more quickly. Keep in mind that approval times will vary from lender to lender.

2. Your Credit Score Won’t Matter

Traditional loans are always easier to get when you have a good personal and business credit score. However, if your company is new, you may not have enough of an established reputation or a high enough credit score to qualify for the loan in the first place. With an MCA, lenders look at your business’s potential for future sales, not your credit score. Even better, you won’t have to deal with your score dropping just because you applied for financing.

3. Flexible Payments

When you take out a business loan, you’re locked into the repayment terms specified by the lender. They don’t care whether your business is booming or if you’re struggling to make ends meet. If you can’t make the payments during lean times, you could lose your business. With a merchant cash advance, your repayment terms are based on future sales, not a set number. This means your payments will be smaller when business is slow and larger when you’re successful.

4. You Don’t Need To Post Collateral

When you take out a traditional loan, it’s normal for lenders to ask you to post collateral to secure the loan. This could be business equipment, inventory, or even the building itself. If you default on the loan, the lender may be able to take possession of your collateral to settle your debt. With an MCA, your future sales guarantee the loan. You won’t have to worry about losing any of your property if you can’t make payments.

If your business needs a little extra cash, skip the loan application process and apply for a merchant cash advance.