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Merchant Cash Advance: Definition

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A merchant cash advance gives a financial possibility to get the necessary amount of money when you don’t have any collateral. This is also a great source of cash because you can be approved even with a low credit. The payments you have to cover with a fee will be a share of your future sales.

Unlike loans with fixed rates, online merchant cash advance is covered with a definite percentage out of daily sales. The payment period is not limited in time because your cash flow can vary.

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So, you can pay less when the sales slowdown. The more money you can repay each month, the fewer months you need to repay the whole sum with a fee. Generally, it takes to 9 months to repay the money.

Due to quick and easy application process and approval during some days, this financial option is quite expensive. So, you need to consider professional help according to your financial situation.