Business
Financing & Merchant Cash Advance for Commercial Distributors
Manufacturers
Be
it, anyone who is into business, he has a merchant account and this
account is used to hold the money from various transactions that are
done using the credit card. It is important to know that the merchant
account can get you some really fast financing for your business
which is into manufacturing distribution.
A
distributor is just a link between the retailer and the manufacturer.
When you are a distributor manufacturer, this helps you to cut down
the expenses that you would incur as a distributor. The new and the
small business that is unable to afford a commercial distributor are
their own distributors and these are known as commercial distributor
manufacturers.
Why
does a commercial distributor manufacturer want to finance?
The
role that the distributor plays is not complicated but they would
have to keep changing their ways to meet the competition in this
industry and to keep themselves up to date with the changes happening
in the industry. This holds true when you are your businesses, own
distributor. The reasons why you may need funds are:
Purchase
of new equipment – You would need to borrow to purchase new
equipment for your business. You would need working capital to
change yourself to the business ways that are followed today.
E-commerce
– This is not just about doing an online shopping or having your
own business website. Customers now look for channels that offer
them better sales like omni-channel. They need websites that are
more user-friendly and also give a good user experience. They also
need to market their business using the social networking websites.
Improving
the back end system – The back-end systems like inventory
management, client management, shipping and ways the client has
managed needs changes too. You would need funders for this because
the way your back-end system operates can affect how the supply
chain works which is important for any business.
Expenses
related to payroll - Business needs capital in order to keep the
workforce and their talented employees well paid. When the sales
pick up one can compensate for this.
For
business expansion – When it comes to distribution business, this
means the more space you have the more business you have. So you
would be needing business funding in order to increase space for the
businesses warehousing needs.
Customer
service–Customer service is something that needs constant
improvement and has to be top notch no matter which business you are
in. It needs funds in order to upgrade the customer service and in
order to maximize the customer satisfaction.
Ways
to finance your business
For
the short term financing of your commercial distribution business,
their are many bank loan alternatives that you could choose to raise
working capital:
Line
of credit
Merchant
cash advance
Alternative
loans
Invoice
finance
If
you are looking for alternative funding solutions then merchant cash
advance is your best bet. This is convenient and also allows easy
loan disbursal. This is thus a winner when it comes to borrowing
money if you are a commercial distributor. It is especially useful if
yours is a startup business.
All
about merchant cash advance
MCA
in simple term is like using your credit card transactions in order
to get a loan and then repaying for it. The lenders do not ask for
proofs and forms or collateral. All that the lender will look at is
the transactions history of your credit card to know the amount of
loan that you are eligible for. You will then have to repay back the
loan which is pre-decided as a percentage of the daily transactions
on the credit card.
The
benefits of opting for merchant cash advance for your commercial
distribution business
If
you are into a small or new business then MCA is a great way to get
capital for your short-term uses. The loan has man advantages over
other forms of loans:
The
application process is simple and easy and is completely hassle free
You
would have to show your bank statement and your tax return papers
along with your credit card statement to apply for the loan
The
approval rate is almost as high as 98%
The
disbursal of the loan can be in as low as 1 to 3 days and sometimes
even in hours of applying for the loan
In
a case where you cannot take a traditional bank loan, go for a
merchant cash advance
Bad
credit ok or high NSF ( not sufficient funds) do not stop you from
applying for the merchant cash advance
The
repayment plan is easy as it is a daily sales percentage which is
agreed upon beforehand
Repayment
period is from 6 to 12 months
The
repayment amount gets debited from your merchant account on an
everyday basis
Use
loan amount on anything as there are no restrictions imposed on the
same
No
monthly interest rate is applied to the loan that should worry you
You
do not need to keep any collateral to be eligible for the loan thus
it is unsecured loans
Additional
funding requirements
For
your small business financing, you may need funding from time to
time. Merchant cash advance gives you additional position advance
funding with no collateral.
2nd
position funding is where you apply for a loan before you have fully
repaid your 1stposition. You can take another loan after
your second funding and also multiple loans. The additional fundings
are named as 3rd position, 4th and
5th Position and so on.
This
is called stacking and the lenders of the merchant cash advance give
you an option to consolidate these additional loans into one as this
allows easy repayment.
Even
if you have a bad credit it is ok when you apply for funding through
a merchant cash advance. This is thus one of the best ways to fund
your commercial distribution manufacturing business.
The
merchant cash advance can be applied from anywhere you are and at any
time. The process is completely transparent and the products are
customized to your business needs exclusively as one size does not
fit all business types.
