This is an attempt to explain to you as to what is a Merchant Cash Advance . It is a loan provided by Merchant money Advance Loan Company, a loan which can be obtained very swiftly. These loans do not exceed an amount of over 500,000 dollars. Approval for these loans is very simple, it is processed on an application and in most cases it is approved in a day, and nearly all the cases are approved. The process of approval involves the following steps:-
- Running life of your company should be more than 4 months.
- Company is maintaining Credit Card payment system from its customers and the monthly income from the payment through credit cards should be at least $2500.
- The pay back will be based on the following procedures:-
- It may begin as and when the company starts earning profit.
- Payments by the customers will be on use of credit cards. Cash payment will also be allowed.
- An agreed percentage of the earnings received through credit cards will go towards the payment of the loan.
- Lenders will install their own Scratch Machine; they will obtain credit card numbers of the customer and deduct the loan payment directly.
- The borrower will not remain concerned about the monthly payment of loan even mixing or forgetting it.
In most cases the borrower will be able to payback the loan as easily as it was obtained. Therefore the companies dealing with Merchant Cash Advance will most probably keep obtaining this loan on regular basis for improvement of his business and the Lender companies will also keep getting business for them self. These loans are utilized for the following purposes:-
- Advertisements of the products.
- Debt repayments.
- Purchase of raw materials.
- Unforeseen expenditures.
- Purchase of new/additional equipments and gadgets or repair of existing equipment etc.
It is facility in blessing for modest entrepreneurs who need cash on urgent basis. The Merchant Cash Advance Loan Companies provide the loan through a hassle free process, no processing fee and fast cash. The approval process is further reinforced by a worry free repayment system based on credit card payment, controlled by the lender. Remember the interest rates charged by the merchant money advance loan companies are comparatively on the higher side when compared to what a bank would charge.