subject: Locating An Unsecured Business Cash Advance Application And Reviews [print this page] As a savvy business owner, you understand that there are times when you have to come up with some money and you need it quick. Going to the bank could be your first thought, however, with a merchant cash advance, your company is more likely to receive the funds you need, more rapidly.
When you apply at the bank, you are obligated to supply more than a "little paperwork". A business plan, financial statements, profit and loss spreadsheets a perfect credit rating, and a formal plan stating the desired use of the capital, are all mandatory. If the loan specialist is displeased with any of your documents, they can decline your loan, stall the process, or demand more proof that you are able to repay the loan. What an unnecessary hurdle.
A Business cash advance provider takes an alternate approach. They already acknowledge that you are a low risk for them since they advance you money based on your monthly credit card revenues, typically over the last four months. They believe that every company sees natural increases and decreases and that your overall intake remains reasonable. Based upon your data and a decent credit history, they will enter into a factoring contract with your company.
This agreement involves you selling, at a discount, a percentage of your future credit card sales for cash in your hand today . Before you start worrying about the cash advance provider taking a huge amount of your revenues without caution, understand that the agreement calls for a set percentage.
If you enter a factoring contract that takes 8 percent of your credit card proceeds each month, know that this number never changes. Even if you have a poor month, you won't be laying out more than 8% of your credit card sales, giving you plenty of cash for other bills.
Not only do you need less paperwork, the process is much quicker. It is not uncommon to have an approval in less than 24 hours and the money in your business bank account in about 5 business days. When your company has an emergency, it is good to know that you can contact your merchant cash advance professional to obtain money quickly and securely.
Any new business who accepts credit cards as a form of payment can turn those sales into working capital in hand today. One of the several advantages is that once your balance is reduced by 70% you can apply for additional financing. If you repay the advance in the time frame originally estimated you will easily qualify for more funds. This is just like a credit line. If you pay back the advance ahead of schedule then it is likely you will qualify for an even larger amount the next time.
by: Rodney Rabah.
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