We live in a thriving economy where financing your company with a good amount of money is a hard task to do. Small businesses need a lot of funds to strengthen and expand their business. The small and the midsized companies find it difficult to get the loans.
Banks do not take risks in lending loans to these businesses. They fear if these companies won’t be able to repay the money on time as they do not generate enough revenue and the repayment course of action will be slow.
Merchant loan is the best and easiest solution of getting loans. Many of the small and midsized companies choose merchant loans to acquire funds easily.
Why merchant loan is your best solution of getting the loan?
Merchant loan is the wise decision for any small and midsized business. Banks do not lend money to small businesses owners. As businesses need to strengthen and expand, finances become crucial issue during financial crisis, and businesses demand instant cash for their business.
High approval rate:
Unlike the bank loans, merchant loan has high approval rate. Any business with an average credit card score can get merchant loan. With this merchant companies attach consultants with every small business owner in order to create a customized plan in accordance with their business demands and needs. This way everything is clarified for both the lender and small business owner as well.
Get funded in less than 7 days
Merchant loans are easy to get and the borrower can receive the money in less than 7 days. Banks tend to drag applications for months, letting you know that you are not eligible for the loan.
No collateral required
There is no collateral required for merchant loan. This is the main reason that makes it popular among the entrepreneurs and small business owners. There is no need to give personal guarantees to the lending company.
No fixed monthly payments
The cash borrower does not have to repay on a monthly basis. Flexible monthly repayments allow business owners to work without any worry of paying back the loan. Merchant companies charge in accordance with the profits earned.
Pay only when you can
As there are no fixed monthly installments, the lenders acquire their money when the cash receiver generates enough revenue and the sales of the credit card increases. The lender keeps 12 to 20 percent of his share in the credit card sales of the business. This percentage can be on daily and monthly sales of the company.
Merchant loan is the best and easiest solution of getting the business loan fast and easy manner.