Getting Creative With Services Advice
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 one of these hardworking businessmen, then you must know that merchant cash advance is very helpful. According to research studies, the industry of business cash advance is growing each year. The main reason why merchant cash advance is becoming more popular is because traditional bank loans are not meeting the demands of almost all business owners. Many businessmen are now starting to appreciate the unique funding method of merchant cash advance.
These merchant cash advance lenders are there to help business owners by giving them 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.
Obtaining money from traditional banks can be very difficult for small business owners. A merchant cash advance program is beneficial and a great funding opportunity for businessmen since most merchants use credit card processing. Indeed, merchant cash advance has many advantages. Many business owners can attest that merchant cash advance is much faster than bank loan when it comes obtaining money. 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. Many businessmen who had an experience with merchant cash advance could say that its programs are 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.
However, before you start choosing a merchant, it is important that you consider some few things first. Take time to do an online research and find the best merchant cash advance lender. 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.