Merchant Cash Advance and How it Can Help Your Business
A smart businessman would always look for ways in which he or she can have new and better types of funding opportunities. If you think that you are part of this population who wanted to have better funding opportunities, then you must know that merchant cash advances exist to help you. Recent studies suggested that the industry of business cash advance industry continues to rises each year. Since the demands of small business owners are not met by traditional bank loans, these business owners went for merchant cash advance. If you search on the Internet, you will find out that merchant cash advance is a unique funding method.
These merchant cash advance lenders are there to help business owners by giving them a sum of cash advance up front. In return, the businessman will pay back the principal amount, plus the fee, and will give the merchant cash advance lender a daily percentage of thei master card or visa sales until they have completed the payment. Daily payback percentage should not go beyond than 10% of daily gross sales – such percentage is based on the volume of monthly credit card sales and the amount of cash advance required. The time frame of payback is usually 6 to 9 months, although it is not fixed. If it takes longer, then there still won’t be any penalties.
Obtaining money from traditional banks can be very difficult for small business owners. However, lenders use credit card processing and it makes merchant cash advance a great opportunity for every businessman. You and your business will surely enjoy a lot of benefits if you employ merchant cash advance programs. Many businessmen who had an experience dealing with merchants know that cash is available much faster than it is with a bank loan. Merchant cash advance has a very simple process and has an immediate liquidity. There are many merchants out there who can give you the money within 10 days only after you have applied. Merchant cash advance is also very helpful since its programs are considered as cash flow friendly. And the best thing about merchant cash advance is that there’s no need for you to risk your personal assets since it requires no collateral.
Before choosing a merchant that can help you with merchant cash advance, it is important that you think about some few things first. You must do a little research on the Internet and find the best merchant cash advance lenders. Reading blogs or articles found on the web is also very helpful, especially those articles that provides tips or suggestions on how you can take advantage of merchant cash advance programs. Also, before you choose a merchant, make sure that you visit their website and check their credentials and their background history.