Maybe.   Let me explain why I said that.  A merchant cash advance was created to fill a void that banks have created by not lending to small businesses.  Business cash advance companies are taking on more risk and as a result they charge more for the money than a bank typically would.  I am going to say something that many in the industry may think but would never dare say because it goes against the whole notion of why they are in business.  But the fact is, all things considered equal, cheaper money is better than expensive money.  So if you can qualify for a bank loan, have the patience to deal with a bank, and can wait 60 days for your money, then get a bank loan. 

So why would I opt for a merchant cash advance if I have good credit?  There are a number of reasons you can still have good credit and yet still may not be able to get bank financing.  Maybe you don’t have the patience or need the funds quickly.  Maybe you have an opportunity that is very limited that will pass if you don’t take advantage of it now.  Or let’s say you have a restaurant where the grill just stopped working and you are too new of a business to get equipment financing.  The process to get the funds is much easier than any bank loan.  Typically you can have the funds in as little as three days.   Another reason to consider a business cash advance is if your credit is good enough to qualify for a bank loan but you don’t have your current tax return completed or maybe you haven’t been in business long enough.  Banks typically want to see two years of returns meaning you have to be in business for two years.  

Having said that, if you have good credit and I mean above 670.  Your options are greater for getting an advance that won’t cost you as much.  The key is finding someone honest enough to present it to you.  Unfortunately the principle hear works like the car industry.  If the finance manager at a dealership can charge you more for the loan, they make more money.  If the advance rep sells you at a higher rate, it could be because he will get double the commission.  I will tell you that someone with good credit should be able to get funded at a factor of around 1.25 and a payback of 12 months, not six.  

So if you need to go the route of a Merchant Cash Advance then go in knowing what your options are.  Ask a lot of questions and see if you can find answers that make sense.  But know one solid truth, if you have good credit the cost of money should be cheaper than if you don’t.