Home Based and Online Businesses

The difficulty in funding home based and online businesses is that the merchant is not locked into any lease or mortgage. Because a merchant cash advance is an unsecured loan i.e. there is no collateral involved and the private lender cannot take over assets if the merchant goes out of business, there is an extreme amount of risk taken on behalf of the merchant cash advance lender during this process. It is precisely for this reason that the money advanced is as expensive as it is.

Historically merchant cash advance lenders have had the most problems with home based and online businesses. Unlike restaurants and retail locations who are locked into leases or paying a mortgage, home based and online businesses can close down their operation without as much difficulty as businesses with store fronts. This isn’t to say that online businesses and home based businesses aren’t eligible for merchant cash advances. There are lenders out there who specialize in these industries, but merchants must be aware that there is simply more risk in providing funding for these business types. For a list of the top merchant cash advance lenders click here!