It has been a year of Merchant Cash Advance Loans, businessmen have in numbers preferred to obtain cash advance as loan from Merchant Cash Advance. The economic recession and collapse of Wall Street in 2008 created many difficulties for small and medium size businesses to get line of credit and in obtaining loans. Businesses suffered due to low profits because of tough price competition and non recovery of revenues and also due to tight credit prerequisites by banks and other financial companies. Businesses suffered as obtaining loans from banks became almost impossible much needed cash was not available at crucial juncture of the business; this led to low credit rating.

Entrepreneurs who required cash to meet expenses for payrolls, to buy new appliances, for repairs of existing appliances and for advertisement turned to Merchant Cash Advance Loans. This resulted in many fold increase in Merchant Cash Advance Loans in the year 2011. Experts have attributed this phenomenal increase in 2011 in Merchant Cash Advance Loans to three main factors. These factors are:-

a. Credit Rating –  Business and personal credit rating are two important factors in obtaining loans from financial institutions/ banks. In many cases they are one and same. Due to low credit rating as a result of financial difficulties and late payment of bills, render businessmen ineligible to obtain loans. Merchant Cash Advance and Loans does not consider this factor to sanction loans to small and medium businesses, therefore they are very attractive for any entrepreneur.

b. Payments through Credit CardsMerchant Cash Advance and Loans are paid back based on payments made by the customers through credit/debt cards. An agreed percentage of the receivables is diverted towards the paybacks, this facilities renders the businessmen free of any mental tension or pressure. Lately the use of Credit Cards has increased tremendously. Use of checks to make payments is fast becoming out dated now. Customers prefer to pay by credit cards in brick, mortar stores and on the internet. Introduction of payment through mobile phones/ smart phones will further boost this practice of payment. The facility is for the consumers, but, indirectly it is leaving a very positive effect on both the borrowers and the lenders in the financial market. Payments back of Merchant Cash Advance Loans is based on credit card receivables, increase in revenues will help to payback loan as early as possible and improve the businessmen’s credit rating.

c. Discretion of Businessmen – Loans obtained from Merchant Cash Advance lay no restriction on the businessmen as to how or where to use the funds provided. Once the cash is sanctioned, the businessmen are at liberty to use them where ever the want in there business. The factor of Flexibility is very attractive for the businessmen, as they spend it where they need it the most. They can pay old utility bills, taxes, inventories, equipment, repairs. Payrolls and even for advertisements / marketing.

AFN procedure is simple and easy. On line application is easy and quick to complete, may be in few minutes. The cash is sanctioned within 24 hours. No doubt the increase in Merchant Cash Advance Loan in 2011 has increased manifold.