All Things You Need to Know About Merchant Cash Advance
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. According to research studies, the industry of business cash advance is growing each year. Since the demands of small business owners are not met by traditional bank loans, these business owners went for merchant cash advance. It’s no secret, merchant cash advance is a very 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 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. 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. You should also know that the time frame of the payback is structured for 6 to 9 months terms, however, 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 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 perhaps the greatest thing about merchant cash advance is that it requires no collateral, and so you won’t be risking your personal assets.
However, before you start choosing a merchant, it is important that you consider some few things first. 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.