Cash Advance Lenders Offer Perilous Financing Option
Several financing experts’ defined merchant cash advances to be the best alternative financing options for small businesses according to an article in Forbes, and the lending costs have lessened along with the growth in the industry.
Cash advance lenders are offering attractive alternative financing in form of merchant cash advance to those businesses that are declined by traditional lenders. When applying for cash advance funding, many small businesses experience best turnaround time as compared to other forms of lending.
Merchant Cash Advance Can Save Your Tumbling Business Growth
A restaurant business in southern Vermont endured hard financial needs after Hurricane Irene according to the Forbes article. The restaurant business suffered a slow season after being the storm struck. With the help of business cash advance funding, the business owner is able to revive the business.
With the help of cash advance funding, the restaurant owner was able to secure funds when turned down by traditional banks. Banks approve the lending after reviewing different aspects of a business when lending, like the business tenure, credit history and how lucrative it likely to be. Most small businesses are unable to secure the needed funds because they lack in few aspects.
Lending Is Easy With Business Cash Advances
If you are a small business owner in need of quick funds and is unable to secure funding from traditional banks, merchant cash advance is an absolute financing option and is on rise. The sluggish but constant enhancements in the economy and consumer spending are expected to keep reinforcing the alternative lending industry as many small businesses are seeking for more inventory and equipment, hire more staff, invest in different projects, increase their operations and expand their businesses.
If you are confuse about how to get a business cash advance or how it benefits your small business, there are 10 reasons you should consider when applying for cash advance funding.
• A business cash advance is an advance offered against the future credit card sales of a business.
• There is no collateral requirement or personal guarantee attached to cash advance lending.
• Since it is not a loan, business cash advance doesn’t appear on your financial statements
• A business cash advance doesn’t influence the borrower’s ability to obtain additional financing as it doesn’t appear on your financial statements.
• If your business monthly sales are at least $5,000 with business tenure of at least 12 months, you are able to secure cash advance for your business.
• Also your personal credit standings would not affect the eligibility of cash advance lending. Cash advance lenders put more emphasis on your business sales and tenure rather on credit standings.
• The cash advance application process is streamlined. You just have filled a simple online form along with some essential documents and you have the approval.
• Cash advance lenders offer fast turnaround time because the underwriting and funding decisions are made within 24 hours of receiving the application.
• It entails flexible repayment where a business is has pay fixed monthly payments. Instead, the payments will be automatically deducted from your monthly credit card sales. A small percentage of credit card revenue is deducted and no intense feelings of fixed monthly installments. You earn more, you pay more – the rule is simple. This is a business is able to manage the business cash flow and the growth.