subject: Business Cash Advances - Help Keeping Your Business Alive In Rough Times [print this page] There is nothing atypical about a merchant encountering unanticipated expenses. In the restaurant business, business cash advances can help keep the doors open while providing the desired funding for repairs, new supplies or growth, without the hardship of applying for a normal bank loan.
Normal bank loans simply do not quench the needs of every entrepreneur. For young businesses, merchants with less than excellent credit history and those small business owners that need a fast approval and payout, conventional bank loans aren't the best choices. In the period subsequent to the sub prime mortgage debacle, few lending institutions are in the market to loan money to any small business owners, even if they are perfect candidates for financing. Fortunately, merchant account providers are stepping in to fill the gap left by normal lenders.
Business cash advances are not actually loans at all. Rather, they are a type of credit card factoring, where one business owner gives a percentage of their future Visa-MasterCard revenues in exchange for fast financing. As long as the merchant can demonstrate a history of several months where they process a reasonable sum of Visa-MasterCard sales - commonly between $2000 and $2500 per month at the very least - a credit card factoring agreement can be reached.
The financing company is likely to request the merchant to change their credit card processors so they can track revenues, but that is a little hassle when compared to the capability to get desired funds fast. It is advisable that the restaurateur ensure that the company with which he does business with follows "best practices" guidelines before getting into contract. An exorbitant amount of financing providers have opened up shop recently in response to the current economic climate so it is best to be sure you do not deal with those that are just trying to take advantage of a growing industry.
Business cash advances can be used to finance any item a small business owner desires. It is quickly obtained and with a flexible repayment program it can make the difference between accomplishing your goals and closing your business for good.
by: Daniel Samoohi.
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