There comes a time when most business find themselves in need of urgent money. This is mostly due to daily expenses that are necessary for the business. However, when they go to banks to secure loans they usually come out empty handed due to various reasons. An alternative though can be found in merchant cash advances that can prove a very good short-term solution.
It offers an alternative source to get money for businesses that do not have the credit rating or collateral to secure a commercial bank loan. Unlike loans, the cash advance funding is the purchase of a portion of the businesses future credit sales at a discount. Once a deal is reached, a lump sum of money is paid and later on, a portion is deducted from the accepted credit cards.
When taking merchant deals, there is no risk of losing credit ratings of collateral, which is beneficial to both parties. Loans put a heavy burden on your credit rating and hinder the chances of one getting another loan. Advances though are paid as per the sales transactions and will not affect the credit rating of a business. Collateral is not risked on the part of the merchants making it a very secure way to get extra funds.
Banks take one through a very long process before they can secure a loan. All your documents are evaluated strictly making the application process very tiresome. Merchants give a faster way as they only check on two things that include your monthly credit card returns and time one has been in the business. You need to have earned a certain amount of revenue in the previous month and having been in business for a certain period to be eligible for such cash advances.
Since a business needs money urgently it is logical if they can get funding at the shortest possible time. If you wait for the bank, you will take long periods and the damage to your business could be done. Luckily, merchants only go over a few things and one can get funding in a short time, usually within a week. This fast process makes business able to attend and solve urgent matters.
Loan application most of the time ends up rejected for a whole lot of reasons. Advances however, have a high approval rate since the merchants are more concerned about the performance of the business than their credit status. Thus, any stable business can be almost be assured of an advance. The amount only varies as per the average monthly revenue in previous years.
The advance offers a very flexible way to pay back your loan. They work on the principle that one has to earn money so that they can be paid. This alone makes the advances so much popular since banks offer rigid payment plans that are paid within a certain period. When business is high, the merchants earn a lot and vice versa. This prevents any kind of financial strain on a business.
When it comes to long-term goals and ambitions, loans from banks can prove beneficial and cost effective. But in situations that really require money urgently, a merchant can prove the best option. They will help you to get out of financial trouble fast and ensure continuity of businesses.
It offers an alternative source to get money for businesses that do not have the credit rating or collateral to secure a commercial bank loan. Unlike loans, the cash advance funding is the purchase of a portion of the businesses future credit sales at a discount. Once a deal is reached, a lump sum of money is paid and later on, a portion is deducted from the accepted credit cards.
When taking merchant deals, there is no risk of losing credit ratings of collateral, which is beneficial to both parties. Loans put a heavy burden on your credit rating and hinder the chances of one getting another loan. Advances though are paid as per the sales transactions and will not affect the credit rating of a business. Collateral is not risked on the part of the merchants making it a very secure way to get extra funds.
Banks take one through a very long process before they can secure a loan. All your documents are evaluated strictly making the application process very tiresome. Merchants give a faster way as they only check on two things that include your monthly credit card returns and time one has been in the business. You need to have earned a certain amount of revenue in the previous month and having been in business for a certain period to be eligible for such cash advances.
Since a business needs money urgently it is logical if they can get funding at the shortest possible time. If you wait for the bank, you will take long periods and the damage to your business could be done. Luckily, merchants only go over a few things and one can get funding in a short time, usually within a week. This fast process makes business able to attend and solve urgent matters.
Loan application most of the time ends up rejected for a whole lot of reasons. Advances however, have a high approval rate since the merchants are more concerned about the performance of the business than their credit status. Thus, any stable business can be almost be assured of an advance. The amount only varies as per the average monthly revenue in previous years.
The advance offers a very flexible way to pay back your loan. They work on the principle that one has to earn money so that they can be paid. This alone makes the advances so much popular since banks offer rigid payment plans that are paid within a certain period. When business is high, the merchants earn a lot and vice versa. This prevents any kind of financial strain on a business.
When it comes to long-term goals and ambitions, loans from banks can prove beneficial and cost effective. But in situations that really require money urgently, a merchant can prove the best option. They will help you to get out of financial trouble fast and ensure continuity of businesses.
About the Author:
Learn more about running credit cards. Stop by Jamal D White's site where you can find out all about merchant services and what it can do for you.
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