» Small Business » Merchant Loans - A Simple Way To Raise Funds For Your Business
Small Business Home Business Wholesale Business Business agency Global Economy

Merchant Loans - A Simple Way To Raise Funds For Your Business

Merchant Loans - A Simple Way To Raise Funds For Your Business

Merchant Loans are increasingly prevalent in society these days

. The existing position of the economy and tough credit expectations are major contributors to the raise in capital advances. It is hard for entrepreneurs to get the funding that is necessary with the increasingly strict conditions for regular business loans. Business cash advances are a different means of attaining funding for everyday business requirements. So how does a merchant cash advance operate? Let us explain

Merchant Loans are a service provided by a lending institution to a small business owner that processes credit cards, most frequently in the retail or restaurant industry. The merchant loan lending agent basically advances the small business owner a predetermined amount of cash in exchange for a part of their future credit card transactions.

For example, let's take Jo's Diner. Jo may not have necessary funding on hand to pay his employees or to buy new appliances for his kitchen. Say Joe needs thirty thousand dollars and he called a Merchant Loan lender for the funds.

The lender would assess Jo's past credit card numbers and find out if he is eligible for the advance. They would figure out an interest rate for the cash advanced. The rate is typically more expensive than a regular business loan because the advance is typically given to merchants that don't have the credit or collateral to get cash from a traditional bank. If the fee for Jo's advance is 30 percent then he would be getting the thirty thousand dollars and paying the provider thirty nine thousand dollars in future credit card receipts.

The lender would collect the $9,000 by taking a portion of the daily credit card volume the business charges. Say the percentage the lender takes is eight percent of daily credit card sales and the entrepreneur received 10,000 dollars in credit card volume for the day. The merchant cash advance provider would receive $800 (8% of the $10,000). This process would keep going until the lender received the entire $39,000. This payment process goes up and down with the cash flow of the business. The percentage will remain the same so if your business has a slow period, you will be paying less. This is a big selling point for the advance service. Regular bank loans have a set payment amount, which could be difficult to pay during slow periods. A merchant loan has the advantage to follow fluctuations in business cash flow.

A merchant loan is a valuable alternative to a business loan. Some will think 9,000 dollars is a steep sum to pay but the stipulations a merchant must meet for a conventional loan is becoming more and more difficult to attain. A business cash advance is a way of receiving fast and easy money to meet business working capital needs.

by: Daniel Samoohi.
SEO: Why It Is Important For Business Websites Productive Facebook Marketing - 5 Ideas For World wide web Marketers No credit check business loan– Get approval loans This Wealthy Affiliate Review Is To Motivate You To Join And Start Earning Cash Online Now Key to your Business – Commercial Mortgage Commercial Mortgage – Funds for your Business Needs Microsite: Useful for Small Businesses and Large Marketing Campaigns Business Centre professionalism inspection How To Get Instant Cash Advance Online Instant Text Loans - Instant Cash without Any Efforts Urgent Cash Loans: Urgent Support for Urgent Situations Make Hard Earned Cash Together With Low-risk Funds Generate Cash With The Low-risk Cost Savings
Write post print Bupa HealthPlus Insurance guest:  register | login | search IP( / Processed in 0.012253 second(s), 6 queries , Gzip enabled debug code: 12 , 2950, 146,
Merchant Loans - A Simple Way To Raise Funds For Your Business