Merchant cash advances, sometimes called business cash advances, are an extraordinarily useful alternative to the conventional small-business loans that do not cause quite so much hassle. While it seems somewhat arcane and complex, the merchant business cash advance is very simple and quite easy to accomplish for those in need. If your business accepts credit card payments from consumers and enjoys a specific amount of revenue every month on a regular basis, it is very likely that your business will qualify for this type of cash advance. The loan is based on future projected credit card sales, meaning that your revenue is the collateral against the small-business loan. Naturally, the merchant funding businesses are dedicated to making the process itself somewhat simple and it is easy to apply online in many cases.
The requirements for merchant business cash advance options are extraordinarily simple and very easy to qualify for. The company needs to have been processing credit card payments for at least two months in most cases. Naturally, merchant funding companies will want to require a minimum monthly credit card revenue amount, usually not a large amount, but directly tied to the amount that you intend to borrow. Of course, you will obviously want to consider the options available to you before choosing a specific type of merchant loan, regardless of what is available on the market. If you are seriously considering a business cash advance, it is important that you read the fine print and make sure you understand everything on the application so that you are not overlooking any hidden fees or charges. Upfront fees, closing costs and other types of fine-print can cost you a fortune if you don’t happen to catch them the first time around. You should never be required to pay fees or extra costs on a business cash advance loan.
Collateral is never required in the case of a merchant cash advance. When you apply for a business cash advance loan, you will never have to provide any form of hard collateral in order to get your loan. Concerning financial statements, most merchant funding providers will only require a few months to ensure that you are making a certain amount of sales on credit cards. Since the credit card revenue is what the merchant cash advance provider is gambling against, it is important that you have some type of credit card service and that it be maintaining a significant amount of product sales for two to three months.
The merchant cash advance loans come in several different types. Fixed payments and what they refer to as fixed terms are two of the types of standards that can be brought to bear. Since many cash advance payments are taken out of the credit card sales in the future, there should be no talk of fixed payment schedules or any type of deadlines. For those funding providers asking for either fixed terms or fixed payments, it is wise to look elsewhere and simply ignore these types of lenders. It is simply not required of you to provide fixed payments or fixed terms, considering that the merchant service loan is supposed to come out of credit card payments. Most small businesses can gain $25000-$250000 per location.
Quite often, some merchant business cash advance providers will refuse to offer cash advance loans to a business that has been operating for less than two to three years. With so many different types of lenders in the world, it is easy to find a business cash advance loan at reasonable rates and there is no reason to capitulate to the lenders that are so difficult to comply with. There are plenty of merchant cash advance lenders that will provide you with what you need and only require you to be in business for 60 days and collect around $3000 worth of credit card sales per month to qualify.