Services such as a merchant advance are designed for people who may not qualify for a traditional small business loan due to bad credit
. A Merchant Advance is when a loaning company purchases a portion of another business enterprise' next credit card sales. For example, the loaning company may buy $10,000 of your next sales for $8,000 today. As customers buy from you utilizing credit, a part of the payments go to paying back the loaner each calendar month until the lending company gets its $10,000. You should be careful, however. While some companies can render much needed capital, a few can be less than honest .