Benefits & Downside to Small Business Loans & Merchant Cash Advances

When you’re starting or running a small business, it’s important to have the funds you need to keep things going. This is where small business loans and merchant cash advances can come in handy. Get your Small Business Loan Quick Apply from PBC here

Small business owners have more funding options than entrepreneurs did ten years ago. These options include not only traditional lenders like banks and credit unions, but also new types of lenders who provide fast access to capital. Some of these lenders offer less-than-desirable terms and conditions; out of all the various financing methods available today, this article will focus on small business loans and merchant cash. 

When it comes to financing your small business, there are a few options available to you. One option is small business loans, and another option is merchant cash advances. Both of these options have their own benefits and drawbacks, so it’s important to understand them before you decide which one is right for you. 

A small business loan is a lump sum of cash that’s lent to a business in exchange for regular payments over a fixed period of time.  The loan amount, interest rate, and repayment schedule are all agreed upon before the money is handed over. 

As a small business owner, you’re always looking for ways to grow and expand your operations. A Small Business Loan or Merchant Cash Advance can help you do just that – but it’s important to understand the benefits and drawbacks of each option before you apply. 

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Small Business Benefits

Small business loans are just what they sound like – loans specifically for small businesses. These loans come with a variety of benefits, including: 

  • Lower interest rates than credit cards
  • Fixed monthly payments
  • Ability to borrow up to $300,000 

Small business loans offer several advantages over other types of financing. They can help you: 

  • Expand or start a business
  • Buy new equipment or inventory
  • Renovate your facility
  • Pay off debt
  • Cover operating expenses 

Small Business Downsides

Despite their many benefits, small business loans also have some disadvantages. Here are a few things to keep in mind: 

  • Loan payments can be expensive, especially if you miss a payment or default on the loan
  • The application process can be time consuming and paperwork-heavy
  • You may need to provide collateral, such as your home or business assets 

Merchant cash advances are different from small business loans in that they are not actually loans. With a merchant cash advance, you are given a lump sum of cash in exchange for a percentage of your future credit card sales. This can be a great option for businesses that are having trouble securing a loan from a bank.  

Merchant cash advances offer several benefits, including: 

  • Quick and easy application process
  • No collateral required
  • Flexible repayment terms
  • Can be used for any business purpose 

Downsides of Merchant Cash Advances

There are also some downsides to merchant cash advances. Here are a few things to keep in mind: 

  • The interest rates can be high, especially if you miss a payment or default on the advance
  • You may need to provide personal guarantees
  • There is no grace period, so you’ll need to start making payments immediately upon receiving the advance 

Benefits & Downside to Small Business Loans & Merchant Cash Advances

So, what’s the verdict? Small business loans are a good option for businesses that need a longer repayment term and have good credit. Merchant cash advances are a good option for businesses that need quick access to capital and have bad credit or no credit. Ultimately, it’s important to weigh the pros and cons of both options before making a decision. 

So, which option is right for you? That depends on your individual business needs and circumstances. If you’re looking for a quick and easy way to get funding, a merchant cash advance might be the right choice for you. However, if you need a larger loan amount or have a lower credit score, a small business loan might be a better option. Doing research on companies that offer small business loans & merchant cash advances is the best way to help you make the decision of the choice that is right for your business. 

Progressive Business Capital provides secure & fast business finance options for your business.  With an extended network of funding companies, we can work with both small and medium sized businesses to help them start a new business, grow an existing business while providing the best possible rate for your loan. 

Securing a small business loan or merchant cash advance for your small business cash leads is just a click or phone call away.  Getting funding offers is just a click away @ and it won’t affect your credit score.  If you prefer to talk with an associate to ensure your questions and concerns are answered, we can also be reached at (800) 508-4532. 


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At Progressive Business Capital, we make it fast and easy to get the cash you need for your small business to continue running smoothly.

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*Same-day funding within 24-hours, funding times depend on several factors including delivery of necessary documents for approvals, communication delays, banking hours, holiday hours, transfer delays, and other unexpected events.

All loans issued are at the sole discretion of the lender or funder. Your small business loan agreement or business advance agreement will identify the funder/loan issuer before you sign, and any product or loan amount offered will depend on the underwriting standards of the issuer. ProBizCap is not a direct lender, does not offer loans or cash advances of any kind.

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