Merchant Cash Advance Continued…
A business loan alternative like a merchant cash advance, is normally an extremely fast process and require only having done business in the past. In fact, many businesses receive an advance loan even after they’ve been turned down for bank finance.
In a merchant cash advance, a business would acquire a lump sum they have applied for to deal with any financial obligations the business may have. The loan is paid back every month, and it is in the form of percentages of your monthly credit card sales. A business having low sales monthly will be able to hold off making a payment on a month to month basis normally. Merchant cash advances give you the flexibility of repaying the advance anywhere from six months a year. This gives opportunity to repay over time.
A merchant cash advance lender literally purchases future credit card sales from merchants cost effectively. It isn’t a loan and it is not cheap. Nevertheless, it’s an option for businesses to obtain needed funds almost immediately. If anyone finds the industry offensive or predatory somehow, they need to direct their contempt to the banks and other financial institutions.
It is a lot easier to get approved for a merchant advance. Getting a normal business loan in today’s economy is tough, if not impossible without perfect credit. Most businesses who need an advance have some trouble with credit in one way or another. This leaves a perfect option. In fact, merchant loans have a 90% approval rate. Even businesses that have been thrown to the wolves by the financial institution may still qualify for an advance to fund expenses, upgrades, or whatever.
A merchant loan gets money inside your account in a week after receiving your official contract. That is a fraction of time it takes at normal loan institutions.
In this economy, acquiring a bank loan is tough, and a merchant cash advance is there when a business is declined. Even though a merchant advance may be costly and expensive, you have to measure what would happen if the business would go under. A merchant advance would certainly come in handy in that case. Just make sure you go through your various different options that are best for your business.