subject: A Merchant Cash Advance Provides An Alternative To Business Loans [print this page] There are a remarkable number of entrepreneurs who have not heard of a merchant cash advance. This sort of business "loan" is actually becoming increasingly accepted as banks are sewing up their pockets and making it tougher than ever to get a traditional loan.
A merchant cash advance is an easy agreement you make with a business cash advance broker or funding company. The difference is in the terms being offered. A cash advance broker is usually not bound to the guidelines of one funder. They are able to assist other industries similar to yours with locating working capital. They are closing deals and obtaining funds for their clients using a business cash advance every day. They are ensuring companies throughout the US have the money they need to operate their establishment. The procedure is fast and can be completed in less than seven days. They can also provide you with great savings on credit card processing.
Dealing with the daily grind of running a company
Business ownership is full of unanticipated hurdles and rewards. When you see that your business is in need of a fast influx of capital, the typical lender is not the place to go. Unless, you have exceptional credit and plenty of collateral, qualifying for a bank loan can be an excruciating and a dragged out process.
On the other hand, your merchant advance is hinged upon your month to month sales history. If you have been processing credit card payments for a minimum of six months, you will likely qualify for the advance. This advance is based upon your future revenue outlook, sold at a discount. You payback your advance with a small percentage of your credit card receivables on a daily basis.
Where you can spend the money
There are a vast amount of things you may choose to apply your money toward. You could expand your store into the space next door. You could settle some debt or past invoices with your wholesalers. You could decide to create a new marketing campaign to bring in more business. The choice is really yours.
While I would never suggest that you apply for a merchant advance just for the sake of doing so, it is a smart idea to have a conversation with a merchant cash advance broker in advance of needing the cash. Find out what they need, what kind of conditions they offer, and how quickly they can turn around your request. That way, when you desire the capital, you will know exactly how to carry on.
by: Rodney Rabah
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