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 are one of these hardworking businessmen, then you must know that merchant cash advance is very helpful. 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. Many businessmen are now starting to appreciate the unique funding method of merchant cash advance.
A merchant cash advance lender provides the business owners a sum of cash advance up front. In return, the businessman needs to pay back the principal amount including an additional fee and at the same time, the business owner should give the lender a daily percentage of their master card or visa sales until the payback has been finally completed. You can expect that it will not go beyond 10% of daily gross sales 0 the daily percentage is based on the amount of cash advance and the monthly credit card sales volume. The time frame of payback is usually 6 to 9 months, although it is not fixed. In case it takes a little longer, you can expect that there won’t be any penalties.
If you own a small business, then perhaps you already know how hard it can be to obtain cash from traditional banks. But most of these merchants are using credit card processing it makes the program of merchant cash advance program a great funding opportunity for many businessmen. Without a doubt, merchant cash advance is beneficial and has a lot of advantages. A lot of business owners who tried merchant cash advance can attest how awesome it is since money is available much faster than it is with a bank loan. The liquidity is immediate and the whole process is very simple. There are actually merchants out there that say they can provide the cash as fast as 10 days. These merchant cash advance are also 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.
It is important that you consider some few things first before you finally select a merchant. You must do a little research on the Internet and find the best merchant cash advance lenders. 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 decide which merchant you should choose, make sure that you check their credentials and their background history first.