When you are the owner of a small or medium sized business, having a constant cash flow is essential. You will need this to balance your inventory, pay your suppliers and your staff as well as expand the business when it is required. Considering that the aftermath of recession still prevails, securing a business loan can be a long and tedious process. One of the ways in which to get around this problem is that of a merchant cash advance.
A merchant cash advance is an alternative source of funding for those businesses who may not have the credit rating or the collateral necessary to approach commercial banks for a loan. The merchant cash advance is based on future sales that you will make with credit cards being accepted as the mode of payment. You get a lump sum which you benefit from immensely and then repay in the form of percentages off your monthly sales figures.
There are several advantages to a cash advance and the first and foremost one is that you do not have to worry about eligibility. You do not have to have a fantastic credit history nor do you have to put forward a collateral. This way you can also save on losing your collateral should you default on payment. The next thing is that the process one has to go through is rather simple in terms of application and actually receiving the loan amount. There are only two criteria that are taken into consideration - your monthly credit card sales has to be above $5000 and you have to be in business for a minimum period. This can be 3 months to 1 year depending on the lender you approach.
Since there is a minimal amount of paperwork involved the turnaround time to actually receive the loan is rather fast. With a commercial loan you could end up waiting for more than a month in some cases, whereas with a cash advance, everything will be done in a week's time. Also, the approval rate for such loans is much higher than that of commercial loans. Any business that can prove its stability will be able to qualify for a loan. And finally, the repayment of the loan is revenue based. So when you collect your money in the form of payments, you pay back the merchant loan in percentages.
This form of a loan has come as a quite a relief to small business owners who often need cash quickly for help sustain their business.
Need a Merchant Cash Advance and want to qualify? Leading merchant cash advance provider, Merchant Cash and Capital, can get you the cash you need for your business today. You can also Apply today to be approved for Bad Credit Business Loan Alternative Financing!
A merchant cash advance is an alternative source of funding for those businesses who may not have the credit rating or the collateral necessary to approach commercial banks for a loan. The merchant cash advance is based on future sales that you will make with credit cards being accepted as the mode of payment. You get a lump sum which you benefit from immensely and then repay in the form of percentages off your monthly sales figures.
There are several advantages to a cash advance and the first and foremost one is that you do not have to worry about eligibility. You do not have to have a fantastic credit history nor do you have to put forward a collateral. This way you can also save on losing your collateral should you default on payment. The next thing is that the process one has to go through is rather simple in terms of application and actually receiving the loan amount. There are only two criteria that are taken into consideration - your monthly credit card sales has to be above $5000 and you have to be in business for a minimum period. This can be 3 months to 1 year depending on the lender you approach.
Since there is a minimal amount of paperwork involved the turnaround time to actually receive the loan is rather fast. With a commercial loan you could end up waiting for more than a month in some cases, whereas with a cash advance, everything will be done in a week's time. Also, the approval rate for such loans is much higher than that of commercial loans. Any business that can prove its stability will be able to qualify for a loan. And finally, the repayment of the loan is revenue based. So when you collect your money in the form of payments, you pay back the merchant loan in percentages.
This form of a loan has come as a quite a relief to small business owners who often need cash quickly for help sustain their business.
Need a Merchant Cash Advance and want to qualify? Leading merchant cash advance provider, Merchant Cash and Capital, can get you the cash you need for your business today. You can also Apply today to be approved for Bad Credit Business Loan Alternative Financing!