10 Easy Tips to Know if Your Business Qualifies For a Merchant Cash Advance
Many merchants aren’t familiar with a merchant cash advance as an alternative means of business financing. Many small businesses can qualify for sizable amounts of money, and some can qualify for over $500,000. Merchants who have poor credit and who are in industries like restaurants, salons, // and retail busienssess traditionally have a difficult time obtaining a bank loan. However, they can qualify for a merchant cash advance. ... [Read More...]
Good Loan Rates
It is difficult these days to obtain a loan from a bank, let alone obtain a loan at good rates. Many times merchants are shocked at the cost of a merchant cash advance. // While this type of funding is generally more expensive than a traditional bank loan, it is much easier to obtain. Furthermore it is an unsecured loan which means that there is no collateral involved. Personal credit and business credit do not generally play a role in obtaining... [Read More...]
Frustration with Documentation
Okay. Let’s put this into perspective. A merchant is receiving an unsecured loan, ranging anywhere from $2,000 to $250,000. Most businesses that are funded in the merchant cash advance industry are considered high risk – if they weren’t high risk then they would be going to banks to obtain their working capital. A merchant cash advance company is not a bank; // they are private investors who are looking to invest their money... [Read More...]
Why Does My Broker Keep Switching Numbers on Me?
While it may be a nuisance for merchants that their merchant cash advance lender changes the advanced amount on them, even after contracts are signed, they must be aware that this type of financing is not a traditional bank loan. // In the rare case that a retail or restaurant merchant actually does qualify for a traditional bank loan it takes weeks, if not months, for the funding to actually occur. During this process the bank is constantly... [Read More...]
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... [Read More...]
I was declined because of industry type
The merchant cash advance industry has evolved a lot from where it used to be five years ago. Private lenders have learned from their past mistakes and are constantly modifying their businesses practices in order to reduce their bad debt. // The merchant cash advance industry has expanded to many types of businesses that typically were not eligible and now are, but many of the industries which were once easily funded are now finding it increasingly... [Read More...]
Broker Vs. Direct Lender
There is a misnomer in the Business Cash Advance industry about broker’s and lenders. Direct Lenders are the “bank” so to say. If contacted they are the actual lenders who are providing you with the majority of the funding for your business and set the rates. They will be able to provide you with one program at a set pricing which they provide to all their merchants. As far as brokers, there are really two different types... [Read More...]
Is a Merchant Cash Advance Right for Me?
Many merchants as the question, “Is a merchant cash advance right for me?” The response of course is, “Well, that depends.” Let’s look over what a merchant cash advance is. A merchant cash advance is a true sale. It is not a loan because the private lender is purchasing a commodity that a merchant is selling, his future credit card receivables, for a monetary amount. The investors purchase the future credit... [Read More...]
