subject: Small Businesses Turn To Merchant Cash Advance Programs For Unsecured Financing [print this page] Any small business owner could tell you just how difficult it is to get a loan from a local bank when the need arises. Gratefully, a merchant cash advance made obtainable by providers may bridge the gap between available cash and needed funding.
Most merchant cash advances or business cash advance are arranged as a factoring contract. This is a specialized contract where a business will sell a part of their projected credit card sales to the broker in exchange for money in you bank today. There are plenty of good aspects to this arrangement.
Primary advantage of a Merchant Cash Advance
Rapid Turnover Time. Financial institutions are encumbered by their magnitude. It can take weeks before your loan, if accepted at all, is on hand. With a merchant cash advance, your business usually have your acceptance letter in a day and the funds in hand in less than a week.
Remittance Terms. When repaying a regular loan a lender will expect to be paid the same amount every month in spite of of whether or not your establishment receipts declines. That can make for some extremely stressful times. A merchant cash advance is tied directly to your credit card receipts. The months your company bring in more, you pay back more, and when you receive less, you pay less; a much more reasonable situation.
Company Statements. To apply for a bank loan, you may need almost an entire ream of paperwork. Tax Returns, Credit scores, financial statements, R&E, and more are requested just to qualify. With a business cash advance, all you need is a decent credit score and a provable history of credit card sales.
Entrepreneurs understand that it isn't always possible to forecast emergencies. A machinery breaks down, business grows quicker than expected, or an opportunity comes along that you can't pass up. Business cash advances are available for just these issues. If you find yourself in need of financing, seek out a merchant cash advance broker.
by: Rodney Rabah
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