A merchant cash advance is a business organization that gives out capital to credit card accepting companies in their list. It is not necessarily a loan. Once the business makes a sale in the future, a slight deduction is given to the company. Many small businesses are enrolling with these companies especially over the last couple of years because of the many advantages accrued from it.
The transaction you have with the company is off the record. There are no laws or rules governing the bodies, so any transaction that you have with them is not put on record. You are therefore assured that your credit worthiness will not be daunted when you fail to return the cash on time.
The process of applying for the advance is very easy. The providers are mainly interested in how long the business has been operating, and the credit card returns calculated monthly. This simple and straightforward process is preferred as compared to the tiresome evaluation of financial statements and business plans done by commercial lenders.
The time taken to give out cash after applying is very short as compared to commercial lenders. Very little paperwork is done and within a span of as little as one week, one can collect the cash advance. The business can therefore take advantage of various opportunities that may arise requiring cash due to their immediate response, or pay a creditor that may be on its neck.
The merchant cash advances mostly give out loans depending on the performance of the business rather than its credit worthiness. This makes it easier for any small business that is stable to be considered for a loan. The revenue collected by the business in question over the last financial year will reflect how far the advances extend.
One of the most tantalizing advantages of taking a loan from the MCAs is that once received, you can pay back in various options adjusted depending on your business performance. You therefore pay less during the months that you make a few sales but more when you make higher sales. This is better than the fixed monthly rates charged by commercial lenders.
In addition, the companies do not have specific restrictions on the use of funds they give out like the many commercial banks. It is up to you to decide on how you want to put the money into use. You can use the money for expanding your business, to renovate it, advertise or for working capital. Whatever your need may be. Besides, you are the only one who knows what your business needs and does not need.
The best part about these companies is that you can get advanced renewals after every three months or less. Apart from the hustle free loan application, the little time it takes to get the capital and the companies having no collateral, you can also be comforted to know that you can renew your cash advance application after three months. This makes it very flexible and convenient to use.
The transaction you have with the company is off the record. There are no laws or rules governing the bodies, so any transaction that you have with them is not put on record. You are therefore assured that your credit worthiness will not be daunted when you fail to return the cash on time.
The process of applying for the advance is very easy. The providers are mainly interested in how long the business has been operating, and the credit card returns calculated monthly. This simple and straightforward process is preferred as compared to the tiresome evaluation of financial statements and business plans done by commercial lenders.
The time taken to give out cash after applying is very short as compared to commercial lenders. Very little paperwork is done and within a span of as little as one week, one can collect the cash advance. The business can therefore take advantage of various opportunities that may arise requiring cash due to their immediate response, or pay a creditor that may be on its neck.
The merchant cash advances mostly give out loans depending on the performance of the business rather than its credit worthiness. This makes it easier for any small business that is stable to be considered for a loan. The revenue collected by the business in question over the last financial year will reflect how far the advances extend.
One of the most tantalizing advantages of taking a loan from the MCAs is that once received, you can pay back in various options adjusted depending on your business performance. You therefore pay less during the months that you make a few sales but more when you make higher sales. This is better than the fixed monthly rates charged by commercial lenders.
In addition, the companies do not have specific restrictions on the use of funds they give out like the many commercial banks. It is up to you to decide on how you want to put the money into use. You can use the money for expanding your business, to renovate it, advertise or for working capital. Whatever your need may be. Besides, you are the only one who knows what your business needs and does not need.
The best part about these companies is that you can get advanced renewals after every three months or less. Apart from the hustle free loan application, the little time it takes to get the capital and the companies having no collateral, you can also be comforted to know that you can renew your cash advance application after three months. This makes it very flexible and convenient to use.
About the Author:
Want to find out more about merchant cash advance, then visit Wanda Rosner's site on how to choose the best credit card processing for your needs.