Occasionally, businesses usually have problems in raising finances. With daily operations to attend to, it is important to secure funds to keep the business up and running. Most would go for commercial lenders but due to the various hurdles, it can be quite hard to secure loans. Due to this, many thus turn for a merchant cash advance, which is the best option when it comes to getting some quick money.
They work differently from banks, as they do not require the many processes that are present in banks. Credit ratings and collateral are rubbished off and they consider only buying a portion of ones future credit sales mostly on a discount. Money is often given when an agreement is reached between the two parties and is paid in form of deductions from credit sales.
There is no credit or collateral that is at stake. While bank loans can affect a business credit rating, cash advances deal with sales transactions and therefore stay out of credit ratings. The merchants themselves do not risk losing collateral, as it is the case with many bank loans. Therefore, it is a safe way to access money without risking a lot.
Banks take one through a very long process before they can secure a loan. All your documents are evaluated strictly making the application process very tiresome. Merchants give a faster way as they only check on two things that include your monthly credit card returns and time one has been in the business. You need to have earned a certain amount of revenue in the previous month and having been in business for a certain period to be eligible for such cash advances.
Since a business needs money urgently it is logical if they can get funding at the shortest possible time. If you wait for the bank, you will take long periods and the damage to your business could be done. Luckily, merchants only go over a few things and one can get funding in a short time, usually within a week. This fast process makes business able to attend and solve urgent matters.
Loan application most of the time ends up rejected for a whole lot of reasons. Advances however, have a high approval rate since the merchants are more concerned about the performance of the business than their credit status. Thus, any stable business can be almost be assured of an advance. The amount only varies as per the average monthly revenue in previous years.
Advances are paid on a revenue basis and this can help lift the financial strain of the business. One therefore pays as they receive income, which means there are no deadlines to be met. Bank loans require fixed installments to be paid monthly, which can be inconvenient especially on a low season. The advances are however paid in as a percentage of the income made and thus the business is not in a fix to pay them.
If you plan to grow your business over the course of time, you would consider bank loans since they are very cost effective in the end. However, a few hurdles along the way may require urgent responses financially and that is when you call upon the services of a merchant. They will give you the much-needed boost to overcome these problems and keep you on track business wise.
They work differently from banks, as they do not require the many processes that are present in banks. Credit ratings and collateral are rubbished off and they consider only buying a portion of ones future credit sales mostly on a discount. Money is often given when an agreement is reached between the two parties and is paid in form of deductions from credit sales.
There is no credit or collateral that is at stake. While bank loans can affect a business credit rating, cash advances deal with sales transactions and therefore stay out of credit ratings. The merchants themselves do not risk losing collateral, as it is the case with many bank loans. Therefore, it is a safe way to access money without risking a lot.
Banks take one through a very long process before they can secure a loan. All your documents are evaluated strictly making the application process very tiresome. Merchants give a faster way as they only check on two things that include your monthly credit card returns and time one has been in the business. You need to have earned a certain amount of revenue in the previous month and having been in business for a certain period to be eligible for such cash advances.
Since a business needs money urgently it is logical if they can get funding at the shortest possible time. If you wait for the bank, you will take long periods and the damage to your business could be done. Luckily, merchants only go over a few things and one can get funding in a short time, usually within a week. This fast process makes business able to attend and solve urgent matters.
Loan application most of the time ends up rejected for a whole lot of reasons. Advances however, have a high approval rate since the merchants are more concerned about the performance of the business than their credit status. Thus, any stable business can be almost be assured of an advance. The amount only varies as per the average monthly revenue in previous years.
Advances are paid on a revenue basis and this can help lift the financial strain of the business. One therefore pays as they receive income, which means there are no deadlines to be met. Bank loans require fixed installments to be paid monthly, which can be inconvenient especially on a low season. The advances are however paid in as a percentage of the income made and thus the business is not in a fix to pay them.
If you plan to grow your business over the course of time, you would consider bank loans since they are very cost effective in the end. However, a few hurdles along the way may require urgent responses financially and that is when you call upon the services of a merchant. They will give you the much-needed boost to overcome these problems and keep you on track business wise.
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