Getting a Cash Advance for Your Small Business is Easy – NRS Funding

(Logo courtesy of National Retail Solutions.)

A cash advance for small businesses is a form of financing where businesses receive a lump sum of money in exchange for future revenues from credit card sales. It is technically not considered a loan, and alternative lenders usually offer variations on this type of financing. Here are some key points to know about cash advances for small businesses:

1. How it works: A business cash advance is an advance on future sales where the business agrees to pay back that advance at a specified percentage of their future daily sales. Businesses may utilize the funds for various business expenses such as opening a new location, renovating an existing one, buying more inventory or equipment, paying salaries, promoting or advertising, and expanding business operations.

2. Advantages: Cash advances can provide quick access to funds, which can be helpful for businesses that need to maintain inventory and supplies. They can also be used to make necessary improvements or upgrades to a store’s layout, attracting new and loyal customers. Additionally, cash advances can help merchants acquire new equipment by offering them a lump sum of upfront money to purchase the equipment.

3. Disadvantages: Cash advances can be more expensive than traditional loans. Cash advances are typically short-term funds, which may not be the best option for long-term financial needs. It may come with restrictions such as a minimum amount of sales or revenue the business must generate each month, and repaying may depend on future sales.

Comparing Cash Advances and Bank Loans:

When deciding between a cash advance and a bank loan, it’s essential to consider the key differences. Bank loans often restrict the use of funds to a single project and may come with high-interest rates and hidden fees. To secure a bank loan, merchants must demonstrate their ability to repay it. After finalizing the loan, monthly payments typically start after 30 days.

However, a cash advance provides more flexibility as it allows using funds for various purposes such as renovating, purchasing equipment, or creating a contingency fund. The application process is simpler and faster, with less stringent approval criteria than bank loans that rely heavily on a good credit rating. Furthermore, cash advances provide funds to business owners much more quickly than traditional bank loans.

Why Would Small Businesses Need a Cash Advance?

Many small businesses need more funds to fulfill purchase orders and replenish inventory. A cash advance proves invaluable as it provides the necessary funds to generate revenue.

Secondly, a cash advance can be viable if a merchant has exhausted their spending budget and requires immediate funds to expand their business. Traditional bank loans may be challenging to secure during the early stages of a business launch when credit history and collateral are limited.

Furthermore, obtaining a bank loan can be difficult for merchants with bad credit scores. Even personal loans require a relatively high credit score, making it challenging for those with scores below 700 or 800, depending on the loan amount: credit management, credit history, and existing debt influence credit scores. Banks often reject loan applications solely based on credit scores without considering the reasons behind the poor rating.

When applying for a cash advance, a low credit score doesn’t hinder the chances of approval. A cash advance typically has fewer requirements, especially for small businesses operating for six months or more, and offers a faster approval process. It enables merchants to invest in inventory, marketing, or equipment, enhancing business operations. Cash advance repayment based on a percentage of sales makes it manageable for new businesses.

Cash advances can be significant for small business owners such as convenience stores and gas stations for several reasons:

1. Quick access to funds: A cash advance can be an excellent way for merchants to get quick funding to meet their business needs. It is crucial for gas stations and convenience stores that need to maintain inventory and supplies.

2. Improvements and upgrades: A cash advance can be a helpful solution for store owners who need quick access to funds to make necessary improvements or upgrades to their store’s layout. It can help attract new and loyal customers.

3. Seasonal nature: Gas stations and convenience stores are often seasonal businesses, and a merchant cash advance may be the right business loan for them. It can help them manage their cash flow during slower seasons.

4. Avoiding bank account overdrafts: Cash advances can help merchants avoid bank account overdrafts and other fees associated with traditional financing methods.

5. Marketing and advertising: A business can use its cash advance to improve its online presence by creating a website or improving its e-commerce platform. It can help attract new customers and increase sales.

6. High volume of credit card sales: A merchant cash advance can be a smart choice for gas stations with a high volume of credit card sales. This type of business financing can help them manage their cash flow and maintain inventory and supplies.

Benefits and Features of NRS Funding Cash Advances

Merchants who need reliable and trustworthy companies can confidently turn to NRS Funding. Applications are easy to complete and only take a couple of minutes. Bad credit doesn’t eliminate a business from being considered for funding, and NRS Funding has a high approval rate. Once a merchant submits an initial application, a funding specialist will reach out to learn more about the business to advise on the best terms for their financial needs. Once quickly approved for an advance, a merchant can expect to see funds in their bank account within as little as 24-48 hours.

NRS Funding also has flexible repayment options for business owners’ needs. Another advantage of NRS Funding cash advances is that the funds can be used in many ways. For instance, business owners can use part of their MCA to buy inventory and another part to purchase office supplies or equipment.

Finding the right provider for a cash advance cannot be overstated. A cash advance can be an excellent way for merchants to get quick funding to meet their business needs. It can be an ideal solution for those who need fast capital but don’t want to go through the lengthy and arduous process of applying for a traditional bank loan. With the right provider, cash advances can allow merchants to continue building revenue and growing their businesses.

To obtain a cash advance through NRS Funding, apply online at or call NRS Funding at 800-212-1477.



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