Need Fast Business Cash? Consider a Merchant Cash Advance

Small business owners have always found it difficult to get quick loans from banks or institutions to invest in their business. Red tape, lengthy waits and frustrating denials are some of the common hurdles disrupting their business operations. Well, in our world of intelligent minds, no problem persists too long. There is now an easy and convenient way for small business owners to get their loans.

What is it?
Cash advance from future Credit Card sales, also known as Business cash advance or Merchant cash advance.

How does it work?
A merchant services company loans your business the funds using your future credit card sales as terms of repayment. Once you receive the funds you can use it for whatever you need to help your business grow. The loan merchant is repaid by taking a small percentage of your credit card sales on a daily basis till the advance is completely paid.

This method of obtaining funds is predominantly the easiest and quickest way of getting a business loan. It will also offer you peace of mind with its quick approval rate and lower qualifying standards. Once you place your application with the merchant cash advance lender, the loan can generally be approved in 2 to 3 business days and funded within 7 days. The loan amount is determined by your past six months’ credit card sales and the amount you are requesting.

The question you are asking your self is how much interest will I be paying for this? The interest rate differs from lender to lender and also depends upon the amount taken. It pays to research. One of the companies that we reviewed at the time of writing this article, was charging 0.12 cents on every dollar given, so a loan of $1000 means a payback amount of $1120.

Most merchant cash advance lenders don’t rely on a credit report. During the application process you provide copies of your last 6 months credit card merchant account statements. This is essential for the merchant, as it helps to determine the volume of credit card sales you are doing.

To qualify for a merchant cash advance, the process is fairly simple; you fill in a short online application form. If everything on the form and the documents you provide are satisfactory, your loan is approved in 2-3 days and the cash advance funding is transferred into your bank account.

• Funds wired to your account within 2 to 3 business days after approval.
• Most merchant services providers don’t charge you an application fee
• Get as much as you want - $ 500 to $ 500,000 to boost your business
• Benefits people or companies with low credit card scores

• Compared to interest rates charged by banks, these rates may be higher
• If your credit card sales suddenly increase drastically in the future, more of the money goes to the lender due to that the repayment percentage is fixed. Of course, your loan will be paid off faster (not necessarily a con).

Overall, this is an excellent option for businesses looking to expand and in need of capital. However, you need to be absolutely sure that you understand what you are undertaking. If you are not sure then consult your accountant or a financial advisor to clear your doubts.