As a smart entrepreneur, you know that there are times when you need to access some cash and you need it quick. Going to the bank could be your first thought, but, with a merchant cash advance, you are more likely to receive the funds you require, more rapidly.
When you apply at the bank, you will be obligated to provide more than a "little paperwork". A business plan, financial statements, profit and loss spreadsheets an excellent credit rating, and a formal plan illustrating the desired use of the funds, are all needed. If the loan officer is unhappy with any of your documents, they can deny your loan, delay the process, or demand more evidence that you are able to pay back the loan. What a hurdle.
A Business cash advance specialist takes a better approach. They already know that you are a low risk for them because they advance you money based on your monthly credit card revenues, typically over the last four months. They believe that every business owner sees natural ups and downs and that your overall intake remains profitable. Based upon those numbers and an OK credit history, they will engage in a factoring agreement with your company.
This contract involves the cash advance company buying your future credit card sales at a discount for cash in your hand today . Before you begin tormenting about the working capital provider taking a large chunk of your revenues without caution, know that the contract calls for a set percentage.
If you enter a factoring contract that takes 8% of your credit card sales each month, know that this number never changes. Even if you have a slow month, you won't be giving more than 8% of your credit card receipts, providing plenty of cash for other items.
Not only do you need less paperwork, the process is much faster. It is not uncommon to have a commitment in twenty four hours and the funds in your hand in about 1 week. When your company has an emergency, it is great to know that you can call your merchant cash advance professional to obtain capital quickly and safely.
Any new corporation who accepts credit cards as a payment method can turn those receipts into cash in hand today. One of the several advantages is that once your advance is reduced by 70% you can request extra capital. If you repay the advance in the estimated time frame you will have no problem qualifying for extra capital. This is similar to a credit line. If you pay back the advance ahead of the estimated time frame then it is likely you can be approved for an even larger amount the second time around.
About the Author:
For many years entrepreneurs have considered Rodney Rabah to be a great source for information regarding the Merchant Cash Advance industry. For honest answers and advice on a Business Cash Advance contact him at Nations Advance.
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