Businesses that employ outside salesmen almost always accrue expenses more rapidly than any other type of business as their representatives are reimbursed or use a corporate credit card for meals, hotels and rental car fees. Plane tickets can get very expensive for those salespeople that travel across the country. They are also paid quite well, in some cases, a nice percentage of the sales they acquire. This can lead to prosperity for the salesperson and revenue for the company.

When times are lean, the salespeople often still maintain a busy travel schedule, but do not sell enough to cover the cost of these expenses. If the company is small, this can lead to a shortfall and hopefully the company has enough credit or cash to handle the situation. Smaller businesses often do not have these reserves and must turn to a merchant loan to cover expenses to stay operational.

When the chips are down and you really want to keep going, you may need money quickly and there is one way to get it in a hurry. Merchant cash advances work especially well for businesses with little credit as the credit of the business is less important that its stability and credit card sales. With a merchant cash advance, the business is selling its future receivables for a discount in order to get money to grow, expand, or even just survive.

The advance company can approve a client and get them their money in a few days, which is quite a bit quicker than if done through a bank, which could take weeks. The bank must analyze the company so that it does not risk losing its money from a default. The fact is that businesses can feel the brunt of the slow economy and may have to turn to outside financing, but it must choose the right option, the one best suits its needs.