djamal-soft
الثلاثاء، 10 يونيو 2014
There comes a time when most business find themselves in need of urgent money. This is mostly due to daily expenses that are necessary for the business. However, when they go to banks to secure loans they usually come out empty handed due to various reasons. An alternative though can be found in merchant cash advances that can prove a very good short-term solution.
It offers an alternative source to get money for businesses that do not have the credit rating or collateral to secure a commercial bank loan. Unlike loans, the cash advance funding is the purchase of a portion of the businesses future credit sales at a discount. Once a deal is reached, a lump sum of money is paid and later on, a portion is deducted from the accepted credit cards.
Credit rating of a business is a very important factor and borrowing loans can affect it negatively. The funding offered by merchants only deals with the amount of sales transactions and does not affect the credit rating. This benefit is mutual as the merchants themselves do not lose collateral and thus is a great way to get funding without much risk.
One can easily apply and collect a Merchant cash advance. The process is relatively straightforward from start to finish. Banks would have to shift through endless financial statements, tax returns and business plans in order to evaluate your application. Merchants on the other hand consider only two things, monthly credit card returns and length of time in business. One usually has to make a certain income per month from credit sales has to have been operating for a certain period to be approved.
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.
It is common to see many loan applications rejected by banks for various reasons. This means that you may not be certain about getting a loan from your bank. Advances however, are accepted most of the time. This is because the performance of the business is the determinant factor, which is not a problem for stable businesses.
The advance offers a very flexible way to pay back your loan. They work on the principle that one has to earn money so that they can be paid. This alone makes the advances so much popular since banks offer rigid payment plans that are paid within a certain period. When business is high, the merchants earn a lot and vice versa. This prevents any kind of financial strain on a business.
Loans can be an invaluable source of finances that for long term, low interest funding. However, the element of urgency can make a business really need money in the shortest time possible and merchants will be your best bet. They allow flexibility of a business to make it easy to handle sudden cash needs any time.
It offers an alternative source to get money for businesses that do not have the credit rating or collateral to secure a commercial bank loan. Unlike loans, the cash advance funding is the purchase of a portion of the businesses future credit sales at a discount. Once a deal is reached, a lump sum of money is paid and later on, a portion is deducted from the accepted credit cards.
Credit rating of a business is a very important factor and borrowing loans can affect it negatively. The funding offered by merchants only deals with the amount of sales transactions and does not affect the credit rating. This benefit is mutual as the merchants themselves do not lose collateral and thus is a great way to get funding without much risk.
One can easily apply and collect a Merchant cash advance. The process is relatively straightforward from start to finish. Banks would have to shift through endless financial statements, tax returns and business plans in order to evaluate your application. Merchants on the other hand consider only two things, monthly credit card returns and length of time in business. One usually has to make a certain income per month from credit sales has to have been operating for a certain period to be approved.
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.
It is common to see many loan applications rejected by banks for various reasons. This means that you may not be certain about getting a loan from your bank. Advances however, are accepted most of the time. This is because the performance of the business is the determinant factor, which is not a problem for stable businesses.
The advance offers a very flexible way to pay back your loan. They work on the principle that one has to earn money so that they can be paid. This alone makes the advances so much popular since banks offer rigid payment plans that are paid within a certain period. When business is high, the merchants earn a lot and vice versa. This prevents any kind of financial strain on a business.
Loans can be an invaluable source of finances that for long term, low interest funding. However, the element of urgency can make a business really need money in the shortest time possible and merchants will be your best bet. They allow flexibility of a business to make it easy to handle sudden cash needs any time.
About the Author:
Learn more about running credit cards. Stop by Jamal D White's site where you can find out all about merchant services and what it can do for you.
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