Merchant cash advance providers lend money to small and mid-sized businesses that accept credit sales. A portion of the loan is repaid every time a customer makes a credit purchase from the business. A set percentage is taken from the transaction and put toward the balance of the advance until it is paid.
Merchant cash advance providers lend money to small and mid-sized businesses that accept credit sales. A portion of the loan is repaid every time a customer makes a credit purchase from the business. A set percentage is taken from the transaction and put toward the balance of the advance until it is paid. Why do many businesses choose credit card advance funding over traditional loans?
New Businesses Need Money
New businesses need money for a variety of reasons. From paying for inventory to investing in computers, new businesses need to spend money to realize profits. Sometimes new businesses fail because they don’t have enough capital to invest. Often traditional lenders only deal with companies in business for a year or longer. They want detailed documentation to prove your business is stable.
If new companies are unable to qualify for loans for business, they might wind up failing right away. Credit card advance cash is easy to get. Nearly 90 percent of businesses qualify for cash advances. Most cash advance lenders only require your business to be in existence for at least two months. You can get the cash you need without waiting a year or longer to show your business is established.
Traditional Loans Require Extensive Documentation
Traditional loans for business owners often require extensive documentation. A business plan or proposal might be requested. The loan packages are several pages long. They ask a myriad of questions about your credit, business and why you need the money. Some even put restrictions on how you spend the loan proceeds.
A cash advance is short and simple. The two-page application only requires basic information about your business. The only additional documentation required is evidence your business conducts at least $4,000 in credit sales every month. Instead of being bogged down by paperwork, your application is completed immediately so you can get cash right away. There are no restrictions on how you spend the cash so you can use it for any purpose to benefit your business.
Cash Advance Loans Are Quick
Business owners wait weeks or even months when they work with a traditional lender. By the time the loan proceeds arrive, the business could already be struggling to keep its doors open. The endless paperwork takes time and effort. If your business doesn’t qualify for the loan, you have to start the process all over again with another potential lender.
Cash advance loans are quick and easy. You just fax a short application with four months of credit card statements. Your business only needs to have a minimum of $4,000 in credit sales each month to qualify for the loan. In about 24 hours, you receive a contract to review detailing the terms of the loan. Once the contract is signed, loan proceeds are usually issued within 48 hours. It only takes a few days to apply for a cash advance and get money for your business right away.
No Need for Perfect Credit
Many smaller businesses have insufficient credit to qualify for a traditional loan. Other businesses go through hard times and have poor credit. If you don’t have security or collateral, this can become an even bigger issue. While these businesses need the money most, it can be hard to get from typical lenders. Without essential capital, your business could suffer or even go out of business.
There is no need for your business to have perfect credit to qualify for a merchant cash advance. If you’ve been in business for two months or more and have no pending bankruptcies, you can qualify for a cash advance. Simply show $4,000 or more in credit sales each month to ensure your ability to repay the loan.
Cash Advance Loans are Easy to Repay
Traditional lenders require a minimum monthly payment. If your business has a tough month, penalties and fees are charged for late payments. This can affect your credit rating and the ability to borrow more money if needed. Accidentally missing a payment can cause a negative chain of events for your business.
Cash advance loans are easy to repay. A percentage of the money owed is taken out of each credit card sale made by your business. If you have a slow month, you pay less based on the number of credit card sales made. During a prosperous month, you are paying down a larger portion of your loan. You can also get additional funds in as little as 30 days after your initial cash advance. There is no need to worry about sending payments, paying fees or dealing with penalties. Everything is automatically done for your convenience.
Your business deserves to get the cash it needs when you need it the most. Traditional lenders make it difficult to get the money your business requires to keep moving forward. Much like the business world, a cash advance moves fast.
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