Comparison In Between A Business Cash Advance And Conventional Loans
Many of them think that the Merchant Cash Advance is a loan
, but it is not true as this is not a loan but a process of increasing the credit card sales. The owner of a certain company receives a certain amount of money on a credit card when a card is processed and then the money is directed to the funding source.
A special fee would be charged for this process and the cash is directed to the funding source. It is one of the best ways of increasing the sales and the program for this runs faster depending upon the number of sales. Sometimes it would be complicated to run this process and the reasons for this are mainly due to customer traffic, less funds and monetary disruptions.
A certain time period will be allotted for the merchant cash advance where the cash has to be returned in 8 months. Over the past the merchant cash advance has been used by a number of people as there are lots of gains in this and besides it helps in securing a loan for a small business.
Compared to the other loans merchant cash advance doesn't need a good credit card score. As most of the banks reject loans for those who are having a bad credit history. For them the merchant cash advance is the best option where they can avail money for running a small business. The repayment details include the details of the person, time and the payments are frequently done by Visa-Master Card.
The Business Cash Advance is another category and it is also a process of receiving money for those who are having a bad credit history. The business cash advance is a huge advantage as there are no restrictions involved and in addition this process is carried at free of cost. A business cash advance is also considered as small business loan where certain amount of money will be granted for your business.
It is a life saver in times of emergency as it comes at the right time. Conventional loans cannot be achieved if the person has a bad credit history, but whereas in business cash advance you can avail money even if you are having a bad credit history. The payments to the companies are based upon the business success and failures.
The interest fee is absolutely less and you have to repay a certain amount based on your business transactions. If your business is running successfully then you have to pay more amounts and if it is dull then you have to pay a smaller amount.
The business cash advance is easy to obtain, the processing is easier and there are more chances for approving this. All major credit cards are accepted even if the credit cards have bad credit history and you have to submit the credit card statements for the past four months in order to make a simple procedure