subject: A Merchant Cash Advance To Make Ends Meet [print this page] Establishing your own small business certainly takes heart, imagination and drive. It is not unlikely for newbie entrepreneurs to find themselves in need of funds, quickly, and a merchant cash advance can definitely help aid their inherent financial shortcomings.
Finding the best choices when looking for a merchant cash advance needs a bit of due diligence, but the merchant cash advance can really make the difference between closing ones doors and getting by through tough periods.
Those in the line of work of merchant cash advances have provided merchants with a great deal of funds over the last few years of economic hardship. The merchant agrees to pay a percentage of his credit card remittance every day until the merchant cash advance has been paid back. Since the repayment amount is directly pegged to credit card processing account remittance, the total repayment capture percentage adjusts to accommodate months when the small business does well or poorly.
Unlike local lenders, companies that give merchant cash advances don't place limitations upon the path merchants use the funds that was advanced. This gives a entrepreneur significantly more flexibility about which expenses they choose to cover. Surely, this also means that the lender is accepting a greater degree of risk which they recoup through potentially more expensive costs
With an approval rate of up to ten times that of normal lenders, merchant cash advance agents do not condition their applicants to display their personal funds or pass strenuous credit pulls. However, certain conditions need to be fulfilled. Applicants must process a sufficient sum of credit card sales to qualify, as repayment is based upon these receipts. Credit card processing statements dating back 3-12 months will be asked for and proof of at least six months in business is necessary under most circumstances.
by: Daniel Samoohi.
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