Learn About Merchant Cash Advance
Merchant cash advances are an excellent way for receiving relatively large amounts of funding within 4-10 business days. If you have ever applied for a bank loan, then you know the amount of paper work and time that it takes until the funds are actually accessible.
Many businesses simply do not qualify for traditional bank loans no matter how good their credit is just because of industry type. If you are a restaurant or a retail business, a merchant cash advance is your quick financial solution to obtain that extra working capital you were looking for, to pay off vendors and loans, to expand inventory, to advertise, to purchase equipment or that new location, or maybe just emergency funding.
If you qualify, a traditional bank loan can take months until you actually have access to the funding. By then you probably have missed that business opportunity or you have fallen into serious trouble with past due payments or loans. Why not obtain funding within days with little paperwork, and infuse that extra money into your business to do as you please?
A traditional bank loan is an excellent and relatively inexpensive source of funding if you can qualify for it. However, credit, industry type, and the amount of collateral you own are all factors which banks take into consideration. Merchant cash advances focus less on credit history and more on business performance. They are interdependent of the merchant’s monthly Visa/MasterCard sales and gross sales. Even if your personal credit is poor, merchant cash advance companies are interested in funding your business. To learn more about credit click here!
Merchant cash advance companies are private investors who lend out their money to merchants and purchase the merchant’s future credit card sales at a discounted rate. The investor gets his return on the investment by taking a percentage of the merchant’s credit card receivables until the amount is paid back. There is no collateral involved and all payments are automatic so there are no late fees incurred by the merchant. In addition, because the merchant is paying the lender back by percentage, then all of the risk is placed on the lender. Because the monthly percentage taken from the credit card sales remains constant, if the merchant’s business falls behind, then the merchant simply pays the advance back slower, with no penalties incurred, interest growing, or fear of foreclosure, loss of business, personal property or equipment. In addition, generally merchants can receive more funding before their current business cash advance is paid off.
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