Merchant cash advance loans and business loans are both financing options available for small business owners. There are several key differences between the two, each with its own benefits. At Texas Funding Solutions, we work to help business owners secure the finances they need to succeed. We can help you determine which type of loan would work best for your business.
Merchant Cash Advance
Merchant cash advance loans are lump sums of cash that a business receives in exchange for a percentage of its daily credit card sales. As Texas Funding Solutions provides the advance, we will assess the creditworthiness of the business and its potential for future sales. We use this information to determine the amount of the cash advance. These factors also determine the percentage of credit card sales that will be deducted until the advance is paid off.
The repayment process is automatic and based on daily credit card sales. This means that the repayment amount varies from day to day. With our easy, 1-page application and 24-hour approval period, a merchant cash advance may be the right option for you.
Business Loan
A business loan is a lump sum of cash that a business borrows. The business repays the amount, with interest, over a set period of time. We'll work with you to agree upon the terms of the loan in advance. This includes discussing terms such as the interest rate and repayment period.
Business loans are typically secured by collateral or a personal guarantee. We consider your business's credit score, cash flow, and financial history when deciding whether to approve the loan. Texas Funding Solutions has flexible terms, whatever your circumstance may be. There are no industry restrictions, and we can give you up to 18 months to repay the loan depending on your situation.
