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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