Merchant Cash Advance and How it Can Help Your Business
Many business owners today are looking for ways wherein they can have better funding opportunities. If you are having a hard time looking for new and better ways to fund your business, then you must know that merchant cash advances can be very helpful. Recent studies suggested that the industry of business cash advance industry continues to rises each year. The main reason why merchant cash advance is becoming more popular is because traditional bank loans are not meeting the demands of almost all business owners. Many businessmen are now starting to appreciate the unique funding method of merchant cash advance.
These merchant cash advance lenders are there to help business owners by giving them a sum of cash advance up front. In exchange, you should agree to pay back the principal amount of cash (plus fee) you borrowed from the merchant cash advance lender and at the same time give the lender a daily percentage of your master card or visa sales until you have completed the payment. It is important for you to know that daily percentage is based on the amount of cash advance required and the monthly credit cards sales volume – expect that it won’t we higher than 10% of daily gross sales. The time frame of payback is usually 6 to 9 months, although it is not fixed. Expect to pay no penalties if it takes longer.
If you own a small business, then perhaps you already know how hard it can be to obtain cash from traditional banks. A merchant cash advance program is beneficial and a great funding opportunity for businessmen since most merchants use credit card processing. Without a doubt, merchant cash advance is beneficial and has a lot of advantages. Many businessmen who had an experience dealing with merchants know that cash is available much faster than it is with a bank loan. Another awesome thing about merchant cash advance is that it has a very simple process and has an immediate liquidity. There are actually merchants out there that say they can provide the cash as fast as 10 days. Merchant cash advance is also very helpful since its programs are considered as cash flow friendly. Moreover, since merchant cash advance requires no collateral, the businessman won’t risk any of his or her personal assets.
It is important that you consider some few things first before you finally select a merchant. It is important that you do a research on the web and look for the best lender out there. It is also helpful that you take the time to read blogs or online articles that provide helpful information about merchant cash advance and how it can help your business. Before you choose a merchant that provides merchant cash advance, make sure that you check their credentials and their background history first.
Advanced reading: Learning The Secrets About Services