Smart Business Owners Use A Merchant Cash Advance For Their Working Capital
You have worked and saved for a lifetime, honing your skills, locating the ideal place, and hiring the best crew. Finally, you open your first business. Then one day, you find you are in need of an influx of working capital to make a renovation or to expand into the adjacent facility, but where to find the capital?
The lending institution is not likely to loan you any money. Not only are you still a "new company" and consequently a greater risk according to their financial records, you just don't encompass a perfect credit history. Most people don't. So what can you do? Relax, and look to your merchant cash advance professional.
A merchant cash advance broker deals with companies of all sizes and ages. Even a business that has only been in business for a few months, but has an established credit card transaction history, can qualify. Based upon that, a merchant cash advance company will offer the advance through a factoring contract.
Never heard of a factoring agreement? A lot of people haven't. A factoring agreement involves selling, at a discount, a piece of expected credit card sales in exchange for funds in hand now. What good would it do you to think you can save the capital over the next three years when the chance to expand into your nearby space is presented now?
Granted, it would be best to regularly have a pile of cash on hand for just such occasions, but for the first couple of years, money is always tight for a new business. Even well-known companies that have been here for a long time have instances when they require unforeseen purchases or maintenance, and having access to business cash advances can make all the difference.
So, whether your dream consists of purchasing those hand blown lamp shades to award your restaurant just the right ambiance, or it means receiving that new piece of equipment, remember that a merchant cash advance is as close as that credit card machine sitting on your counter.
by: Rodney Rabah.