Business Financing - Three Easy Steps To Obtain A Business Cash Advance
Are you missing out on business growth due to shortage of capital
? Are you tired of waiting for weeks or months for loan approval? Are you being asked to produce hordes of redundant financial documents? Are you frustrated by all the inconvenient questions surrounding your business loan proposal? Are you looking for a quick and painless way to acquire funds for your business and get ahead of the competition? If yes, then a business cash advance, also called a merchant cash advance is just what you're looking for.Business cash advance is a financing option that is changing the world of business. While a conventional loan application is approved in weeks or months, business cash advance providers release funds within a week, sometimes in as few as three days. The application form is available on the internet. The form is quite straightforward and doesn't take much time to complete. Further, you provide a multitude of financial documentation for approval.
This is how business cash advance application works:
1. Establishing an account with an approved credit card processor
Business cash advance is not a loan, it is a purchase of your business' future credit card receipts. Thus, to receive a business cash advance financing, you should have an account with a major credit card processors. Open an account with the approved credit card processing service and start accepting credit card payments at least six months before submitting your application.
2. Submitting an application for an advance
Business cash advance providers ask you to submit your credit card processing statements with the application. Your application is evaluated based on two criteria - time in business and average monthly credit card sales volume. Typically, you should be in business for a minimum of 6 to 9 months with average monthly credit card sales of $5000 or more to qualify for a business cash advance.
3. Finalizing the business cash advance
If your application is approved, a contract will be drawn out. This will specify four vital numbers.
- Amount of credit card receipts purchased: This is the amount of the credit card receipts that you sell to the provider in exchange for the cash advance. It is in fact the actual cost of the advance.
- Cash advance amount: This specifies the actual funding you will receive from the provider.
- Percentage of daily credit card sales: This specifies the percentage of credit card receipts that will be paid out to the provider each day. This percentage should be fixed at the start and not change through the payment period. Scrutinize the fine print thoroughly for vague clauses that can be used by unscrupulous providers to change this percentage at a later stage.
- Penalty terms: The terms are specified to make you aware of likely actions in case of contingencies.
Upon receiving the contract, read it carefully. Clarify all concerns and understand each term and condition specified in the contract. Remember that business cash advance is not a loan. Your contract is the only official safeguard against deceitful providers. Once you sign and accept the agreement, the advance will be deposited to your account within seven days or less. Business cash advance is a quick and painless funding option. Simplify business cash advance funding by familiarizing yourself with the prerequisites for approval.
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