It is more difficult than ever before for small business owners to obtain the business financing needed in order to start or expand their business. Capital is an essential part of any business and keeping the cash flow positive is a must to ensure ongoing success. Many small business owners no longer meet the increasingly arduous requirements of traditional business loans, and they need to turn to alternatives to secure the necessary funds.
It is more difficult than ever before for small business owners to obtain the business financing needed in order to start or expand their business. Capital is an essential part of any business and keeping the cash flow positive is a must to ensure ongoing success. Many small business owners no longer meet the increasingly arduous requirements of traditional business loans, and they need to turn to alternatives to secure the necessary funds.
Merchant cash advances are attractive to small business owners for many reasons. Merchant cash advances are based off of future credit or debit card sales with a percentage deducted from each sale as repayment for the loan. This makes them viable options for small businesses that are already established, new small businesses and those with little or poor credit. Also, there is no long-drawn out approval process which makes it a better option for emergency financial situations.
Unlike merchant cash advances business financing, bank loans have very strict requisites for approval and an intense and long approval process. By the time you do get approved, if you get approved, your company could be on the brink of bankruptcy. Once you are in a financial hole, it is more difficult to get back into the black. The expediency of merchant cash advances can save you from this threat and provide the cash needed in a prompt fashion.
Applying for a merchant cash advance is easy and most lending institutes require no collateral and no personal financial guarantees. Your credit history will not be taken into account and your financial history is only used to project future credit card sales. The length you have to repay the cash advance is based on the average amount of credit or debit card transactions expected and the percentage of each transaction taken. The payment terms are flexible and there is no fixed monthly interest rate. Many merchant cash advances have no predetermined set amount of time that it must be repaid as well.
This all adds up to offer an excellent tool for business financing for the small business. There is less stress involved, no large monthly payment to worry about achieving and no time frame to worry about. Upon the approval of a merchant cash advance loan, terms including the percentage rate of each transaction will be settled. The more credit or debit card sales your company does, the faster the loan will be repaid. A higher rate of credit card transactions will qualify the small business owner for a higher amount of cash advance.
Smart and savvy business financing is an essential part of owning a small business. Merchant cash advances are an attractive tool to gain the capital needed for your small business.