Everyone has several financial crises. Even small businesses can also find themselves in a financial pickle at different times and it is quite normal. It is just a part of undertaking business. Under such situations, short-term funds can help you to cover every-day operational costs including paying off debt, buying new equipment, covering expenses during slower months, filling inventory to grow the business, capitalizing on opportunities, boosting a marketing campaign, and so on. Any one of these reasons can trigger the requirement to borrow money on a short-term basis. In these situations, a merchant loan in advance can be a great solution.
What Merchant Cash Advance Actually Refers?
A merchant loan cash advance offers the owners of small business a certain lump sum of money in exchange for a specific interest rate of future credit card sales. Whenever you decide to have cash advances, only think that you are just selling a portion of your future revenue instead of actually borrowing any money. One of the biggest things that you can benefit from this set up is that you do not require to pay fixed monthly payments. Therefore, you do not need to concern even if you are having a particularly slow month. As the terms of repayment are on the basis of a percentage of your future credit card sales, the garnished amount is equivalent to the amount of your credit card sales every period.
In this merchant loan, the percentage to be deducted from your credit card sales is set at 10%. Therefore, if you bring in $5000 in one month, you have to pay $500 and if you bring in $3000 in the next month, you have to pay $300. With this setup, you still have access to a huge part of your own revenue. The changes will be reflected in the payments in case if existed. Definitely, you will never be forced to pay more than you earn. This kind of financing program truly separates from a traditional loan.
Benefits of the Merchant Cash Advance
Many of the small business owners are searching for alternative lending options rather than traditional loans from huge banks. Here you can see some of the great advantages of merchant cash advances.
- No collateral
- No up-front fees
- No credit checks
- No fixed payments
- No restrictions on the usage of funds
- No late fees
- No long waiting time for loan approval
The biggest advantage is that the loan amount is available within 48 hours. If you will surf the web, you will encounter various banks that offer many financing options which is very quick and convenient. After all, no one likes to wait for the banks to approve your loan and deposit your money. It is very important to check out the reviews of various finance lending banks on whom you can trust and depend completely to cover your expenses. Reliable loan providing banks will never let you down for sure. Thus, choose the best and right financing option from the internet and get the loan amount credited to your bank account in no time.