subject: Restaurants And Retail Stores Utilize The Merchant Cash Advance Program To Their Benefit [print this page] Debits and credits, pluses and minuses, the world of finance is always changing and adapting to the requirements of the small business owner. Small businesses drive a good deal of the fiscal growth of the country, so it is particularly strange that local banks make it so complex to obtain short term financing. Fortunately, a merchant cash advance is easier to acquire, is made available more quickly, and is a savvy move in an unstable market.
Can I Qualify?
To qualify for a merchant cash advance you will need to satisfy a few variables. First, you need to have been open for a few months. Second, you will have to be able to provide at the least a few months of credit card sales. The business cash advance company will determine how much they are willing to advance you based upon your past sales.
The instant you sign up with a merchant cash advance provider, you will have access to more than you thought. Not only will they provide you working capital this time around, but once your advance is reduced 70% they will analyze your file and can provide you with more funds. Merchant cash advances are growing in awareness and are potentially the most valuable and most often used small business financing agreement.
How Does it Work?
After you apply for a business cash advance, the business advance broker will determine if you take in adequate proceeds to be able to pay back the cash in a the time allotted - usually a few months to a year. A percentage of your future credit card receipts will be withheld to cover the balance until the balance is paid in full.
If the numbers make sense, you will sell those upcoming sales to the company, at a discount, for funds in hand now.
An additional gain these arrangements have when compared to bank loans is that you decide what you want to do with the cash.
by: Rodney Rabah
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