A merchant cash advance is a business organization that gives out capital to credit card accepting companies in their list. It is not necessarily a loan. Once the business makes a sale in the future, a slight deduction is given to the company. Many small businesses are enrolling with these companies especially over the last couple of years because of the many advantages accrued from it.
The transaction you have with the company is off the record. There are no laws or rules governing the bodies, so any transaction that you have with them is not put on record. You are therefore assured that your credit worthiness will not be daunted when you fail to return the cash on time.
Unlike the traditional banks where you have to wait for several weeks or even months before you are given feedback on your loan application, this one is quite easy. The only thing that the company looks for is how long you have been in business and your monthly credit card returns. Many businesses are attracted by this straightforward and simple method employed by the companies.
The short processes taken to check your paperwork saves a lot of time especially when you are applying for a loan to capitalize on a good deal that may come your way. It may also be easier when you have a creditor who is pressing and threatening to sue you since the loan application can take as little as one week to process. Small businesses are especially evasive of the long processes taken by the banks.
The companies do not dwell so much on the credit rating of your business. They only check on how well you have been performing over the last couple of months. Any small business that is stable in terms of revenue collection is therefore qualified to apply for their loans. The length of the advance is usually directly proportional to the revenue collected during the previous financial year.
One of the most tantalizing advantages of taking a loan from the MCAs is that once received, you can pay back in various options adjusted depending on your business performance. You therefore pay less during the months that you make a few sales but more when you make higher sales. This is better than the fixed monthly rates charged by commercial lenders.
Once you receive funding, you are free to do with it as you wish. When it comes to expanding your business, increasing on working capital or renovating your premises, you are the one who knows how well; you need to capitalize it to increase sales. This is different from the monotonous traditional banks that require a standard report on the way that you will put the money to use.
Besides the hustle free loan applications, lack of personal collateral and the many other benefits attached to MCAs, the companies also have a renewal schedule of about three months. This means that you can apply again for funding once ninety days are over. This provides consistency and reliability.
The transaction you have with the company is off the record. There are no laws or rules governing the bodies, so any transaction that you have with them is not put on record. You are therefore assured that your credit worthiness will not be daunted when you fail to return the cash on time.
Unlike the traditional banks where you have to wait for several weeks or even months before you are given feedback on your loan application, this one is quite easy. The only thing that the company looks for is how long you have been in business and your monthly credit card returns. Many businesses are attracted by this straightforward and simple method employed by the companies.
The short processes taken to check your paperwork saves a lot of time especially when you are applying for a loan to capitalize on a good deal that may come your way. It may also be easier when you have a creditor who is pressing and threatening to sue you since the loan application can take as little as one week to process. Small businesses are especially evasive of the long processes taken by the banks.
The companies do not dwell so much on the credit rating of your business. They only check on how well you have been performing over the last couple of months. Any small business that is stable in terms of revenue collection is therefore qualified to apply for their loans. The length of the advance is usually directly proportional to the revenue collected during the previous financial year.
One of the most tantalizing advantages of taking a loan from the MCAs is that once received, you can pay back in various options adjusted depending on your business performance. You therefore pay less during the months that you make a few sales but more when you make higher sales. This is better than the fixed monthly rates charged by commercial lenders.
Once you receive funding, you are free to do with it as you wish. When it comes to expanding your business, increasing on working capital or renovating your premises, you are the one who knows how well; you need to capitalize it to increase sales. This is different from the monotonous traditional banks that require a standard report on the way that you will put the money to use.
Besides the hustle free loan applications, lack of personal collateral and the many other benefits attached to MCAs, the companies also have a renewal schedule of about three months. This means that you can apply again for funding once ninety days are over. This provides consistency and reliability.
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Learn more about running credit cards. Stop by Wanda Rosner's site where you can find out all about merchant solutions and what it can do for you.
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