subject: Short Term Business Loans - Finding Working Capital In A Tough Credit Market [print this page] There are various junctures in the natural duration of a small business when merchant capital becomes a driving need to keep afloat or to expand. Whether the entrepreneur needs funding to remain afloat or additional cash later in the life of the business to grow and succeed, securing cash can be tough.
Short Term Business Loans can be attained through a variety of places. Family and friends, conventional bank loans, credit card advances and more, are all valid options. However, for a small business owner that has established themselves in their business for at least six months, there is the selection of acquiring funding through a merchant cash advance as well.
Many merchants come to the realization that making use of the collateral of their future credit card transactions they can get immediate, solid funding. The primary condition in receiving this type of funding is a history of credit card acceptance volume using your monthly merchant statements. Surely, merchants needing these methods of funding are for the most part fairly young in age, and therefore can't be approved for a conventional bank loans. Fortunately, small business cash advances, those under $200,000 per business location, are readily available from different merchant account providers.
When a merchant attains funds from these type of providers, the payment schedules are ultimately binding to Visa-MasterCard sales as seen on a daily basis. That is a particular benefit in today's economic state, as sales one month can change immensely from revenues in another month. An agreed upon percentage of receipts called the "daily capture" goes to paying off the balance rather than a fixed amount.
An additional benefit to working capital strapped merchants is that short term business loans are usually approved and the working capital is made available within a few business days. No traditional bank can review and approve a loan package that fast.
by: Daniel Samoohi.
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