Occasionally, businesses usually have problems in raising finances. With daily operations to attend to, it is important to secure funds to keep the business up and running. Most would go for commercial lenders but due to the various hurdles, it can be quite hard to secure loans. Due to this, many thus turn for a merchant cash advance, which is the best option when it comes to getting some quick money.
It offers an alternative source to get money for businesses that do not have the credit rating or collateral to secure a commercial bank loan. Unlike loans, the cash advance funding is the purchase of a portion of the businesses future credit sales at a discount. Once a deal is reached, a lump sum of money is paid and later on, a portion is deducted from the accepted credit cards.
Credit rating of a business is a very important factor and borrowing loans can affect it negatively. The funding offered by merchants only deals with the amount of sales transactions and does not affect the credit rating. This benefit is mutual as the merchants themselves do not lose collateral and thus is a great way to get funding without much risk.
One can easily apply and collect a Merchant cash advance. The process is relatively straightforward from start to finish. Banks would have to shift through endless financial statements, tax returns and business plans in order to evaluate your application. Merchants on the other hand consider only two things, monthly credit card returns and length of time in business. One usually has to make a certain income per month from credit sales has to have been operating for a certain period to be approved.
It is also a very fast process. Unlike banks that take long to process an application, merchants only go over a few details and give the advances within very short periods. This gives one value for money, as they are able to attend to financial matters as soon as they arise.
While one can apply for a bank loan, there is a high possibility the loan request can be rejected. With the urgent need for money, most business cannot afford rejection and many will turn to merchant loans. They usually have a high approval rate, as performance of a business is their main consideration. As long as a business is stable, they are assured of getting the advance.
The payment of the cash advances is very considerate since they are revenue based. For them to get paid, you must get paid first. This is probably the biggest advantage they have over bank loans. While banks require a fixed monthly payment, advances fluctuate as per the sales volume of the business. This percentage collection helps to support a business and does not put a financial strain on them.
If you plan to grow your business over the course of time, you would consider bank loans since they are very cost effective in the end. However, a few hurdles along the way may require urgent responses financially and that is when you call upon the services of a merchant. They will give you the much-needed boost to overcome these problems and keep you on track business wise.
It offers an alternative source to get money for businesses that do not have the credit rating or collateral to secure a commercial bank loan. Unlike loans, the cash advance funding is the purchase of a portion of the businesses future credit sales at a discount. Once a deal is reached, a lump sum of money is paid and later on, a portion is deducted from the accepted credit cards.
Credit rating of a business is a very important factor and borrowing loans can affect it negatively. The funding offered by merchants only deals with the amount of sales transactions and does not affect the credit rating. This benefit is mutual as the merchants themselves do not lose collateral and thus is a great way to get funding without much risk.
One can easily apply and collect a Merchant cash advance. The process is relatively straightforward from start to finish. Banks would have to shift through endless financial statements, tax returns and business plans in order to evaluate your application. Merchants on the other hand consider only two things, monthly credit card returns and length of time in business. One usually has to make a certain income per month from credit sales has to have been operating for a certain period to be approved.
It is also a very fast process. Unlike banks that take long to process an application, merchants only go over a few details and give the advances within very short periods. This gives one value for money, as they are able to attend to financial matters as soon as they arise.
While one can apply for a bank loan, there is a high possibility the loan request can be rejected. With the urgent need for money, most business cannot afford rejection and many will turn to merchant loans. They usually have a high approval rate, as performance of a business is their main consideration. As long as a business is stable, they are assured of getting the advance.
The payment of the cash advances is very considerate since they are revenue based. For them to get paid, you must get paid first. This is probably the biggest advantage they have over bank loans. While banks require a fixed monthly payment, advances fluctuate as per the sales volume of the business. This percentage collection helps to support a business and does not put a financial strain on them.
If you plan to grow your business over the course of time, you would consider bank loans since they are very cost effective in the end. However, a few hurdles along the way may require urgent responses financially and that is when you call upon the services of a merchant. They will give you the much-needed boost to overcome these problems and keep you on track business wise.
About the Author:
Learn more about running credit cards. Stop by Jamal D White's site where you can find out all about merchant services and what it can do for you.
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