Getting a business loan is really a complicated process and most people prefer to apply for a merchant cash advance. A business can obtain funding by providing collateral or with bank loans though these are considered inconvenient and tough means to secure business funding. The key issue related to securing loans from such approaches is that they involve lengthy documentation with rigid terms and are time intensive.
A merchant cash advance is user friendly as compared to bank loans. At most of the time, you can get funding without providing any collateral or personal guarantee and you can obtain the loan based on your credit card sales. The loan repayment will be made from your debit or credit card sales and you don’t have to worry about your bad credits or credit balances. Also, a cash advance can be obtained at any time and without persuading a cash advance lender on how you’ll spend the amount. While in case of bank loans, you have to convince the bank officer about how you will spend the loan amount when you apply for business loans.
There are certain simple requirements which a business have to fulfill before apply for a merchant cash advance. The business ought to be in business for a year or more. The business must also have a good sales amount that was made through the credit cards. The cash advance amount a business receives will based upon the credit card sales that the business have acquired throughout a term of 3 to 6 months. Business cash advance is the best funding alternative for small businesses when banks or other financial institutions turned their loan application down.
Getting a business cash advance funding is easy. A business firstly has to setup a credit card processor. After setting it up, submit the cash advance application to the cash advance lender. Credit card processing is required as you’ll repay the cash advance from your business’ credit card sales. The application submitted must also include the personal details as well your details about your business.
Once the information along with loan application is submitted, cash advance lender will go over a verification process on which the lender approve or disapprove the loan request. The last step before receiving the advance is to sign AN agreement of contract. this may embody the number you have got borrowed, the speed of interest etc. It does not take abundant time to complete these processes and find the amount of money.
Business cash advance is really the most appropriate kind of financing option for almost all kinds of businesses. Whether you’re a retail business, a restaurant, a barber shop, eye clinic, dress store, instrument store or any other small businesses, getting a business cash advance can really help.