Successfully operating a small or medium size business, whether opening a private medical practice, stocking the latest fashion trends, or providing a business-to-business service, such as cleaning or landscaping, is about more than earning an income, it’s about fulfilling a dream.
However, a volatile marketplace, unforeseen employee turnaround, or unexpected emergencies can produce cash flow challenges, which can make running a small or medium size business, feel like a never-ending nightmare.
Acquiring the financial assistance needed to keep the business facilities operating through a traditional lending source is a time-consuming, tedious process, demanding hours of personal preparation. After which, business owners often discover that they lack one or more key qualifications for the loan approval.
Consequently, entrepreneurs need alternative funding sources, essentially a cash advance lender who is able to customize a loan solution for their unique company, making a cash advance for businesses among the best options for financial assistance.
What exactly is a Merchant Cash Advance?
A merchant cash advance generates immediate working capital for the business, and is an extremely effective financial tool. Obstacles to company efficiency and success can often be eliminated by an immediate infusion of funds.
With a merchant cash advance, recipients may apply funds to any business expenditures, including payroll and operating expenses, merchandise and equipment purchases, or for implementing new marketing strategies.
A merchant cash advance functions similar to a traditional loan, in the fact that the money is transferred to the business, for its use, however, the innovative repayment procedure is what makes a cash advance so different.
By installing a new credit card terminal, which the business employs for all daily credit and debit transactions, the cash advance lender is able to receive payments through an electronic transfer of a percentage of each transaction amount. This small percentage is typically similar to the amount charged by the current terminal company.
Advantages and Benefits
One of the most significant advantages of a cash advance for businesses is its worry free repayment process. Business owners are spared the hassle of an additional monthly installment payment, rigid penalties, and late charges, by the effortless, percentage repayment method.
Highly beneficial for businesses whose sales levels fluctuate with seasonal and holiday promotions, consumer trends, and weather conditions. On a month when sales are slow, the business doesn’t face the pressure involved with paying a large, pre-set amount. In addition, the business may make supplementary payments on the balance at any time.
A cash advance for businesses offers another incredible advantage, in that the approval process is not determined by personal credit history. A cash advance lender qualifies a business based mainly on favorable credit and debit transaction activity. Even businesses with less than perfect credit history can be approved for a cash advance.
The accelerated application and qualification procedures required for a merchant cash advance are among its additional advantages. This fast approval period provides businesses with a recourse for emergency purchases, or allows them to implement dynamic new sales programs as quickly as possible, or in time for important holidays.
The qualification process for a merchant cash advance is extremely rapid. Businesses may use the funds to help meet operational expenses during slow months, upgrade equipment, or expand services.
Being aware of the specific profit margins involved for their unique merchandise or individual services, business owners should consider certain aspects of the merchant cash advance process, namely the transaction repayment percentage.
Since the cash advance lender determines the initial dollar amount of merchant cash, the transaction percentage will affect the length of repayment time.
By simply clicking on the apply button below and answering a few questions, you will begin the process of propelling your business to success with a merchant cash advance.