Jul
4
2010
Merchant Cash Advance: Convenient Business Finance
Author: Kate SmithYou might be looking for a way to obtain business finance but having a tough time doing so. If this is the case, then you know by now that you need to go through many obstacles just to be able to get your small business loan applications approved by banks and other similar institutions. You also know that you need to be able to meet different sets of conditions that may be unpractical for you to agree. If you are having a hard time trying to get access to business finance, you should consider a merchant cash advance.
What can a merchant cash advance do and how does it solve your business finance dilemmas? It is among the best methods in getting access to business finance. Although it is relatively new in the United Kingdom, businesses in the United States have already been taking advantage of it for quite some time now. Those operating through credit card transactions are ideally the ones who would be benefit the most from a merchant cash advance. It is different from traditional loans since you don’t have a fixed lump sum each month to repay. Repayment is dependent on the average volume of credit card sales that you make daily. If your credit card sales are low, then you can expect you merchant cash advance repayment to be low as well.
There are a lot of benefits that a merchant cash advance can offer. These benefits normally cannot be matched by business loans from banks and other similar institutions. The best ones are the following:
1. Approvals for merchant cash advance would normally just be within 24 hours. When you get a business loan through banks or other similar institutions, it would normally take weeks for it to even be approved. You also would have slimmer chances to have business loans approved when you apply for them in the traditional way.
2. You will normally be able to get the funds that you need within 10 business days after the approval of your merchant cash advance. This will be invaluable to your business growth plans.
3. Flexibility is one great advantage you can be able to have with merchant advances. You can use the funds you will be receiving in any way you wish, unlike small business loans wherein the funds can only be used for a specific purpose.
4. There is absolutely no need to pay a fixed lump sum monthly once you go for a merchant cash advance. You will barely feel the repayments as they are based on the average volume of your daily credit card sales. The lower your credit card sales are, the lower your merchant cash advance repayment will be.
5. Having another merchant cash advance on top of your current one can be done easily and without the need for re-application.
6. You need not worry about it having a negative effect on your credit score.
7. You do not need to have collateral in order to get a merchant cash advance.
If you are still skeptical about the many benefits that a merchant cash advance can give your business, try talking to a specialist who will be willing to help you with any concerns that you may have. To be able to qualify for one, all you need to do is make sure your business is operating for at least a year upon application and that you deal with credit card transactions. It’s as simple as that.
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