Financing With A Merchant Cash Advance
Merchant cash advances offer businesses a way to finance their existing company without having to put up any collateral. These loan alternatives are common for very businesses that can prove revenue via credit card transactions. It is very difficult for most people who want a working capital loan for a business to get a good response from a bank if they don’t meet the strict requirements including good credit, long business history, and in many cases collateral. There are alternatives like business lines of credit, equipment leasing and grants – but in many cases none of these options are viable for merchants. Aside from borrowing money from friends and family, or giving up ownership for a partial investment, the only good alternative to a traditional loan in many cases is a merchant cash advance.
Merchant cash advances (or business cash advances) offer other benefits as well. Unlike traditional loans, cash advance are fast! Approvals take very little time and funding can usually be transferred within a few days to a week. There are also no long applications or any business planning required. Cash advances can be used for any purpose; payroll, renovations, stock, taxes, or anything.
Payback is also a benefit in the sense that merchant cash advances offer flexible payback options that work with your business’ cash flow. When your business does more sales you pay back more, when sales are down you pay back less. Additional the whole payback system is automated making the cash advance simple.
If your business is in need of fast financing, regardless of your credit, assets or plans, a merchant cash advance can offer your business working capital based on future sales determined by your recent sales history, specifically transactions via credit cards.
Cash advances are simple. Even high risk businesses and businesses with bad credit may still apply for a cash advance. Merchants can obtain financing quickly without guarantees, liens, or collateral normally required for business loans.
Even Someone with a Credit Score of 450 is Eligible For a Merchant Cash Advance
You may think that someone with a credit score of 450 would not be eligible for anything, let alone a $50,000.00 business cash advance or more. But I assure you they are. I have firsthand experience with several business owners whose credit score was just as bad, if not worse.
These people came to us with no other options and were completely surprised to discover that we were able to fund them. These people may have had bad credit, but they had a few things going for them;
- They owned their own business
- They had a consistent record of business transactions (i.e. credit card sales)
- They were current with their lease or mortgage payments
- They had no current tax liens
We were able to fund these businesses because we don’t approve businesses based on their credit score; we fund these businesses based on their transaction records, particularly their credit card transactions.
A business cash advance is unique in that they are able to advance you money by purchasing a portion of your future, unprocessed credit card receivables. Once they give you the money; you pay it back automatically through your credit card processing machine using a small percentage of your daily credit card sales.
There are several advantages to this type of arrangement. Most notably; they are able to get working capital for their business when nobody would touch them. Other key advantages are that there are no monthly bills to pay, no bank fees and no late charges.
Because they use a percentage of your daily credit card sales; it creates a flexible payback structure, where you end up paying less on slow days and more when sales pick up. Before you know it, the advance is paid off.
Business cash advances have helped thousands of business owners get the financing they needed to grow their business and become even more competitive. If you are looking into different funding options, I invite you to click here to learn more.
Chris Ronk writes articles about business loans and merchant cash advances for http://www.businesscashadvanced.net Article Source:http://www.articlesbase.com/loans-articles/even-someone-with-a-credit-score-of-450-is-eligible-for-a-merchant-cash-advance-1347438.html
