Best Merchant Cash Advance – The Basics
Although they may seem like traditional loans, best merchant cash advance are a unique and effective financing alternative for businesses that have steady income streams. Unlike loans, which provide companies with a lump sum and a set repayment term, merchant cash advances offer a more flexible solution by working on as needed basis, and featuring daily repayments that help keep costs from ballooning. With merchant cash advances, businesses can guarantee that they will always have cash on hand to cover operational expenses without dipping into their reserves.
Could a merchant cash advance be right for your business?
Many commercial loans suggest that they are flexible when it comes to repayment but look a little closer and you will usually find there are fixed repayments over the schedule of the loan term. This is especially the case with commercial bank loans and similar traditional forms of borrowing. A merchant cash advance is classed as an alternative form of business finance and it is quickly gaining in popularity.
Firstly, to qualify, you need to take sales from your customers via debit and credit card transactions through your merchant payment facility. The advance amount is usually calculated on your monthly card turnover so say for example your business takes £5000 in sales you could qualify for an advance of up to 150% of this value.
So which is the best merchant cash advance?
Traditional business loans are either backed up by collateral, something physical which is forfeited if the customer is unable to meet repayment requirements, or they rely on the good credit standing of the applicant. Defaulting on a business loan can, therefore, have very serious ramifications for individual’s financial futures.
In contrast to this, an merchant cash advance is considered to be a sales transaction and therefore it stays off your credit report. This means you can take an MCA out to secure funds quickly for your business, safe in the knowledge that you aren’t risking your entire financial future.
Quick and Simple Applications Process
Unlike a business loan from a bank, which often requires a deluge of paperwork, an merchant cash advance is a quick and straightforward process. It is not only a lot faster than taking out a bank secured loan but it is also much less stressful. As a general, rule the Best Merchant Cash Advance provider will only want an overview of your cash flow to ensure that there is a realistic prospect of the loan being repaid, although the exact requirements will vary between lenders.
Get Your Cash Fast
Because there is less paperwork involved, you usually get access to your Merchant Cash Advance much more quickly than you would get access to a traditional loan. This makes the best merchant cash advance very useful for small businesses who often run on a much finer profit margin than their larger counterparts. Small businesses are more susceptible to unexpected cash flow problems. An Merchant Cash Advance can give small businesses enough wiggle room to overcome temporary cash flow problems.
Securing a business loan requires an underwriting process which can take weeks, even months in some cases. An MCA, on the other hand, is usually available after only a few weeks, which can make a huge difference if a creditor is breathing down the businesses neck
Still looking for the best merchant cash advance? view our website and complete the online application form, one of our best merchant cash advance consultants will contact you by return.