Merchant cash advances are the quickest fix for whatever funding needs your business might currently have whether to cover emergency expenses, purchase new inventory, support an expansion, or save a failing venture. The convenience, ease and speed of the features make it a lot more attractive compared to that of the traditional means of funding.
Merchant cash advance is a form of financial service wherein the provider agrees to buy, at a discounted rate, the future Visa and MasterCard revenues and pay upfront cash to the business owner. Payback will also be done through the credit card sales transactions where a pre-arranged percentage of this will be regularly deducted. This funding program is most ideal to retail, seasonal businesses, franchisees, and restaurant merchants not only because of the slim chance they have at getting approved for a business loan but also because of the immediate liquidity. But regardless of the industry or market you are in or the reasons for your borrowing funds, you can still apply and be granted of the cash needed.
This funding program may come in various names or terms but still come up with the same definition, requirements and benefits. When it comes down to really acquiring funds, how do you go about comparing merchant cash advances?
First off, search for likely candidates from where you will choose from the best financial service provider that is right for you. In comparing merchant cash advances from various companies, you should consider how much they are willing to pay for the purchase of business’s receivables. Also, compare the percentage that the company will be deducting from the credit card sales.
Evaluate how the processing works for each company. Deciding to get a merchant cash advance means that you are indeed in a hurry to get the funds and would prefer fewer hassles. Comparing the timeframe and requirements by which you would be able to get hold of the money would be helpful.
Merchant cash advances are typically known to be unsecured which require no personal guarantee or security in the form of any personally owned or business-owned asset as collateral. Though not as popular, a secure form can also be availed of. Providing less of the risks to the lending company, secured merchant cash advances offers lower rates for the borrower. Existing and even would-be properties which will be bought using the advance can act as collateral including real estate, equipment, and other businesses. To compare and know which form is best for you, ask your merchant cash advance provider for policy information regarding both programs.