no further - Merchant Cash Advance is the right choice for your
small enterprises can do with extra finance to build and improve
their business. But it has become very difficult for these businesses
to avail traditional bank loans as they are frequently turned down.
So, if you own a home furnishings or home goods store you must have
experienced your share of rejections. The furnishing business is
seeing an upward trend and furniture stores must keep stock of the
latest rage in the market; this may be cost extra and extra cash on
hand will be very beneficial.
those who cannot avail bank loans can receive immediate cash from
merchant cash advances. MCAs are advantageous for small businesses
because the repayment is proportional to the volume of sales; as a
result, during off seasons or low periods, the repayment is less when
compared to peak business season.
even bad credit can stop you now
credit is one of the main reasons for businesses to not get
traditional finance. Getting bank loan is not easy; the sanctioning
procedure is tough and even if the loan is sanctioned you need to
arrange for some personal guarantee before you are funded the loan.
The other reasons are multiple NSFs, liens, and bankruptcy. If you
are experiencing any of these situations do not be disheartened
because there are various alternative funding solutions in the small
business financing where there are lenders for whom bad credit is
okay. Merchant cash advance providers advertise “bad credit Okay”
as they function in ways different from traditional loan lenders and
course, those who are just starting off new in the field and have a
good credit score need not worry about getting financing.
use can the extra cash be out to
survive in a highly competitive business if you own a furnishing
store you must stock up on the latest models and rent a large
warehouse to store all the goods. Thus, besides the regular inventory
management, payroll expenses, tax liabilities, repairs you will have
the additional costs of the rental of the warehouse, electricity and
the labor cost of the place. In case you are dealing with second-hand
furniture, your expenses will be less than those businesses that deal
with new furniture sales.
not to worry we have the most suitable business cash advance program
in place. Our BCA does not need perfect scores and no collateral.
All loans will be approved within a day or two and you can access
your money almost instantaneously.
you use the money is entirely up to you. You do not have to deal with
unscrupulous lenders anymore. With this working capital, you can
build your business and reach the next level of prosperity.
are times when there is an urgent requirement of working capital and
you do not have the time to apply for regular commercial loans. Or
it is also possible that due to bad credit no lenders are willing to
lend you the much-needed extra funds. And the cash advance from your
merchant cash advance provider is not sufficient or is yet to arrive,
at such times you can get cash advance in the 2ndposition,
and in some cases even the 6th
position. The need for 2nd
position funding is used by some merchants as a revolving credit to
clear old debts, though it is not a very prudent idea.
interest rates are extremely high but then you will have immediate
access to the much-needed cash. While getting cash advance in any of
these positions is fairly simple some documentation is required. For
example, the borrower must produce the actual credit scores, bank
statements, a photo ID and residential proof. Most of these companies
have a dedicated customer service who will provide a clearer picture
should you need it. Remember this must be your last resort.
should you choose merchant cash advance
are several types of lenders and borrowers can borrow unlimited funds
but MCAs are very popular among small businesses who choose to expand
or upgrade their business. Here are a few reasons why MCA is a good
small business funding option.
application is very simple, quick and easy as the lenders verify
only your bank statements and credit card details before processing
your loan application.
providers do not mind how you spend the loan amount as long as the
payments are on time and you abide by the rules of the contract.
repayment is proportional to the sales hence you do not have the
burden of paying a fixed amount each time, which is tough especially
when the sales are low.
can is paid over a longer period; the only catch is that you will
end up paying much more than what you took.
key feature often overlooked while applying for a cash advance is the
factor rate. Most people confuse factor rate with interest rate and
hence plan a poor repayment schedule. Unlike interest rates which are
calculated as a percentage, factor rate is in decimals and usually
around 1.2 to 1.5. Those availing business cash advance must pay heed
to the factor rate more than the rate of interest because that will
decide the final payment amount. For example, if you avail a loan of
$500,000 then the final payment becomes $500,000 times 1.5 which is
equal to $750,000.
when you are in dire need of money and the regular bank loans and
credit cards cannot help MCAs are great short-term loan options. But
you will have to keep in mind that the interest rate for MCAs is very
high and you cannot compare it with long-term loans with more
reasonable rates. These unsecured loans can arrange for the immediate
cash required to meet any essential expenses.Usually, you can avail
between $5-$150K of working capital from the MCA. To make the
equation between you and a lender more beneficial you can look for a
loan specialist who will give you finder’s fee for every referral.
Don’t bemoan lack of resources and cash; be
proactive and take things into your own hands. Set up a merchant Cash
Advance account and upgrade your business, expand it and invest in
the necessity marketing and inventory and see your business flourish.