Businesses of any size are always looking for ways to grow their business. It’s possible for a business to reduce the amount of time between stages of growth through the infusion of funding. There are a variety of different lending options available to businesses.
Two common types of lending are a merchant cash advance or a bank loan. Each has their pros and cons, but only one is more suited for business owners, especially those of smaller organizations.
A bank loan, as the name implies, is a type of loan that is provided by the bank. These loans require a steep interest rate that can cost a lot of money if not paid off in time. In many cases, collateral from the business or owner may be required in order to receive the loan at all.
At Smart Business Funding, a merchant cash advance allows a business to immediately receive up to 125% of their monthly card volume in a single payment. The lender gets their money back by pre-purchasing future receivables from credit card volume from your business. In other words, a small percentage of each credit card sale is delivered to the lender until the payment is repaid.
Unfortunately, for many businesses, a traditional bank loan is often out of the question due to high financial requirements that the banks establish. In many cases, businesses are turned down from banks and are then required to find alternative forms of lending.
This is where a merchant cash advances comes into play. At Smart Business Funding, we make it easy to apply and qualify for funds for your business. Businesses only need to have been in business for 3 months and have $10,000 in monthly revenue to qualify for funding. This means that there is a much higher approval rate for a merchant cash advance than a bank loan.
Merchant cash advances also have no financial restrictions as to how you use your funds. In some cases, a bank loan may restrict what you can use your new funding for. A merchant cash advance gives you and your business the freedom to grow your business in the best way you can imagine.