Merchant cash advances are basically any big business organizations that give out capital to stable small businesses that have credit card accepting facilities in their systems. They do not necessarily call their advances loans since they are returned once the business makes a sale. Small businesses now prefer using these merchant cash advances rather than the traditional banks especially over the last couple of years. There are many reasons that these businesses are following the trend.
A merchant cash advance is usually an off the record transaction that is not governed by any laws. It is merely a sales deal. As such, no credit reports are made on the back of the business. This makes sure that it retains its credit-worthiness and collateral property.
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.
Because of the little paperwork required when applying for their loans, time taken to process the loan application is very little. Within a span of one week you can get you cash as compared to the long evaluations done by the traditional banks before they consider you for a loan. By so doing, a business is able to take advantage of a favorable situation that may arise in the future.
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.
In addition, once the companies give you funds, they leave you to decide on how to use the money to improve your business unlike the traditional banks that monitor everything you do with their loans. You may opt to expand your business, do some advertisements or renovations if you do not want to use it on working capital. This is good since the business owner knows best what is good for his/her company.
The best part about these companies is that you can get advanced renewals after every three months or less. Apart from the hustle free loan application, the little time it takes to get the capital and the companies having no collateral, you can also be comforted to know that you can renew your cash advance application after three months. This makes it very flexible and convenient to use.
A merchant cash advance is usually an off the record transaction that is not governed by any laws. It is merely a sales deal. As such, no credit reports are made on the back of the business. This makes sure that it retains its credit-worthiness and collateral property.
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.
Because of the little paperwork required when applying for their loans, time taken to process the loan application is very little. Within a span of one week you can get you cash as compared to the long evaluations done by the traditional banks before they consider you for a loan. By so doing, a business is able to take advantage of a favorable situation that may arise in the future.
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.
In addition, once the companies give you funds, they leave you to decide on how to use the money to improve your business unlike the traditional banks that monitor everything you do with their loans. You may opt to expand your business, do some advertisements or renovations if you do not want to use it on working capital. This is good since the business owner knows best what is good for his/her company.
The best part about these companies is that you can get advanced renewals after every three months or less. Apart from the hustle free loan application, the little time it takes to get the capital and the companies having no collateral, you can also be comforted to know that you can renew your cash advance application after three months. This makes it very flexible and convenient to use.
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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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