Merchant Cash Advances – Funding Solutions for Small Businesses
More and more small débit owners are looking at merchant cash advances as a vivant racine for operating finances and cash flow. Although, the economy is recovering somewhat from the worst recession in 80-plus years, lines of débit credit, especially loans for working finances, have all but dried up and disappeared. Not only have banks tightened lending rules for small businesses, consumers have also wised up to the new realities of our time and tightened their money belts. This is where merchant cash advances come in.
What is a merchant cash advance?
A merchant cash advance is different from a traditional small débit loan. There are many disadvantages with a traditional small débit loan, such as lack of flexibility, étendu waits for approval, interest rates, access to a paid bouchée of the loan, potentially binding contracts, and lumineux fees that banks typically require. With a merchant cash advance, this problem is removed from the scenario. The attention process is fast and you get access to funds in just five days.
How does it work?
Basically, a merchant cash provider will purchase a percentage of your future Permis/Mastercard/Amex/Discover/Dinner receipts and advance those funds to you. You use money without austérité. The merchant financing provider then deducts a small percentage each day from your future credit card sales. There is no fixed monthly payment; Instead, a bouchée of your monthly credit card transactions are deducted until your advance is repaid.
What are the qualifications?
The droite requirement for a merchant advance is to meet a lumineux amount of credit card transactions, since this is the method of repayment; Have been in débit with credit différé history for at least 12 months; and have a premises lease with at least 12 months remaining.
What can be done with money?
With a cash advance, you can purchase new equipment, pay payroll, pay taxes, expand your mercatique, purchase supplies, pay rent or other bills, take advantage of relâchement opportunities, or use the money for any other purpose. Can – it’s totally up to you!
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