Do you need more funding to expand your small business, buy more equipment, or hire more help? Usually, small business owners would go to the bank and ask for a loan. Depending on economical environments, a bank loan can be a long-drawn out process or one that is not granted at all. Otherwise, the small business owner can get a merchant cash advance.
How To Get?
The cash advance process is much like finding a bank. You can find on internet and Yellow Pages for keywords such as merchant cash advance, cash advances, or credit card cash advance. You have to submit some general information to the lender and then they will figure out whether to offer you the funding you are looking for. Generally, the cash advances are easier to acquire and the funds are quickly available as compared to a conventional bank funding.
How The Process Work?
The process of cash advance includes several parties: you, the cash advance lender, the processor, and your customers’ credit card payments.
To get a merchant cash advance, you offer the lender the rights to a set percentage of your credit card sales until the loan is repaid plus interest. The amount of money furnished by the cash advance provider and the related interest rate can vary from case to case.
After a short amount of time, you will be given the funding and then have to set up an account with the processor. Your small business continues as usual, selling services and products (customers will not know you have engaged within the merchant cash advance process). The only difference is in regards to your accrued credit card funds. A fixed percentage will be forwarded to the cash advance lender. This continues until the borrowed amount plus interest is paid to the cash advance lender. Keep in mind that the percentage is fixed and constant and not the dollar amount for each payment to the lender.
Where To Spend?
You can use the borrowed amount on any business-related objective that can benefit your small business.
- Hire skillful workers on the board
- Start advertising and marketing for your small business
- Purchase new equipment
- Purchase another location
- Renovate your office building
The process of cash advance online is one that is exceptionally-applicable to many small business owners; however a number of them won’t realize they have the option. Funding from a traditional source can be hard to acquire, and at the same time as the transferred funds can take weeks or even longer to acquire. A cash advance is a possible funding solution for a small business that is in need of extra cash to push them to the next phase of success.
Quick Access To Funding
In a market where getting funding is almost impossible for small business owners, merchant cash advance makes funding easy. Merchant cash advance is a nice way of alternative financing for businesses and offer small business owners quick access to funding.
Since a cash advance is not a loan, it does not help you to build your business credit and the cash advance lenders do not report the repayment history to the credit bureaus. The rates on cash advances are normally high and therefore, many small business borrowers turn to alternative options, such as an online small business loan, which provides the same conveniences and that too at a lower rate as compared to the cash advances.