Banks have extremely strict rules for lending money to small business owners. Due to lack of financial help in crisis situation, many businesses are forced to shut down and close doors for customers forever. Hence, a solution was created for such small businesses so that they can run their businesses skillfully and successfully. This solution is known as business cash advance
By using merchant account and credit cards as a form of customer payment, small business owners can now access money quickly and without any hassle.
What is Business Cash Advance
Business cash advances also known as merchant cash advances are loans partially secured by payments coming from credit card processing companies. The amount of business cash advance a business can get depends entirely upon the volume of credit card transaction. Business cash advance services demand from a small business owner to switch card processing, towards a lender-approved vendor. Business cash advance is easily payable through daily credit card transactions depending on the loan amount and length.
A borrower can acquire multiple loans which can be easily repaid within 4-6 months. Positive payment track enables the borrower to repeat the lending process multiple times with higher amounts and comfortable loan lengths for easy payments. Such business loans are similar to signature loans, as the funds borrowed may be used for any purpose.
Business Cash Advances are also referred to as factoring- a purchase of future card transactions by a lender. While there is some guarantee presented by a past credit card transaction volume, lenders undertake quite a significant risk leading to higher interest rates. On average, business cash advances feature a 35% premium on top of the principal amount borrowed. However, with low level of lending transaction volume these days, a business cash advance may be the only borrowing tool available to small businesses.
Hassle-Free Application and Approval Process
Application for business cash advance is easy and fast with 90 per cent approval rate. Majority of business cash advances are approved and funded within a couple of weeks. Application criteria narrows down to providing recent credit card processing statements, business documentation, and a reference from the landlord. Business Cash Advance requires new merchant accounts for which agreements are signed. Some businesses end up leasing processing equipment which helps in performing daily loan repayments.
Business Cash Advance is easy to acquire small business loan that ensures growth and stability of a business. Considering the speed with which banks approve business loans, business cash advance is the best possible solution for small business owners.