What Types of Businesses Can Benefit the Most From a Merchant Cash Advance?

Not every business can be fortunate to qualify for a commercial loan. It is tough to qualify, as some businesses might be at high risk and may experience down periods over how they can earn money. Newer businesses might not have enough credit to qualify for an advance, plus some entities that have been losing money might not receive the support they need from the banks.

But that doesn’t mean all is lost, as a business can qualify for a merchant cash advance. You can use an advance if your business takes in most of its sales through credit card payments. It helps you get the funds you need right away, plus you can pay them back through your future credit card transactions.

You can benefit from a merchant cash advance, but you may have an easier time getting more from your advance if you’re in a particular industry. There are many types of businesses that can get more from a merchant cash advance than others. These include groups that require extra money for regular operation.

Retail Stores

Retail stores can benefit from merchant cash advances because retailers might struggle to bring in money on occasion. An off-season can be tough to manage, as a store may not bring in as many transactions after a while. A merchant advance is useful for retail stores, as the advance doesn’t require set payments. You could spend as much time as necessary to cover the advance, so long as you pay a percentage of your credit card receipts every day or week.

A retailer can also use one’s advance funds to cover the cost of inventory. Some retailers need to restore their inventories more often than they might expect, especially if certain things become more popular. A store needs help in getting its inventory under control at times, so having an advance to cover the costs involved here will be critical to the company’s success.

Personal Care Businesses

Hair and nail salons, barber shops, and other personal care businesses will require plenty of inventory to stay operational. A business needs the proper cleaning items, care products, and other features that customers will demand when visiting a site. A merchant cash advance will help you get the money you need to pay for all those items.

A personal care site can also benefit from an advance if it has regular customers. Some salons and barbershops might feature loyal customers who trust a business and regularly use its services. You’ll have an easier time paying off your advance if you have enough regular customers that will give you consistent credit card payments.


Hotels can also experience down periods, as some hotels might be more popular at certain points in the year. The fact that people can cancel hotel reservations in some cases makes it tough for hotels to guarantee they’ll get the money they need. While hotels could charge less money for no-cancellation stays, not everyone is going to support these rates. Merchant advances are useful for hotels that aren’t always guaranteed to get the funds they need for their operations.


Restaurants aren’t likely to experience downturns as often as retail stores or hotels. But there’s always a need to ensure a restaurant can keep operating well. A restaurant needs enough inventory on hand to keep its operations afloat and to satisfy whatever needs diners have. The potential for restaurants to expand to new locations or to offer extra things like a food truck or a catering service could also be a factor. Restaurants need extra help operating to make them work. A restaurant that has to close because it doesn’t have the materials needed to stay operational may not be as easy for people to trust, making it harder for it to stay active.

Repair Sites

Repair stations will need the best possible equipment to ensure their customers can get their vehicles, computers, or other items repaired as necessary. A repair station needs enough staff members to work as well. A business also needs to restock its sites with the necessary parts for various tasks. The expenses can be tough to manage, especially when trying to get some unique items that might not always be readily available for use.

While a repair site could use a business loan, that entity will require collateral. The business might put its new repair equipment up as collateral, meaning it could be repossessed if the company cannot pay off the loan. A merchant cash advance doesn’t require collateral, as a business will sell its future credit card receipts. Seeing how many repair businesses collect most of their payments through credit cards, it shouldn’t be tough for a repair company to benefit from a merchant cash advance.

Medical Offices

While medical offices can receive plenty of funds, they often have to wait for them. It usually takes a while for an office to receive payments from insurance companies. A cash advance provides a medical clinic the funds it needs for regular operation, especially when it takes a while for insurance payments to come through.

A medical office will also require an advance to cover the salaries of various workers. Many people who work at these offices will command substantial salaries. These places also have to remain open throughout the week to meet whatever needs the people may hold. A medical business has many responsibilities it needs to meet, but it often requires extra help in ensuring the funds people have are managed well enough.

The potential for a business to grow with a merchant cash advance is strong, as it helps a company grow without risking collateral or other losses. Your business could benefit from a cash advance, especially if you’re in the right field. Take a look at your company’s needs and see how a merchant cash advance can work for whatever needs you hold. You’ll find an advance to be a more suitable option for getting money than what a loan might provide.

Save Time, Money, & Resources

Categories: Funding and Merchant Advances

Get Started

Ready for the ultimate credit card processing experience? Fill out this form!

Contact HMS

Ready for the ultimate credit card processing experience? Ask us your questions here.