Wednesday, July 6, 2011

Merchant Cash Advance- Your Easy Short Term Finance Option

The idea of merchant cash advance is quite a novel one. It has supplied a much-needed financial increase to many small company entrepreneurs. Many of which, find themselves short of the funds needed to satisfy their existing obligations and move forward with upcoming work. It's 1 of the easiest and fastest ways to get the essential funds for a business owner or merchant. Moreover, you'll have fast ability to access the funds due to the minimum documentation that is required to acquire this type of loan.

When the small business person goes to the bank to borrow funds, they normally have a long checklist of requirements to get an approval. Everything from profit and loss sheets to a sensible strategic business plan. In addition, you need to be able to promote your ideas, plans, and business predictions to a skeptical mortgage officer. As most of us have heard and experienced the lending institutions have tightened their belts when it comes to lending money. Getting a loan in todays market could be almost impossible.

By applying for a merchant cash advance or a business cash advance, you're actually permitting the lender to convert a percentage of the future credit card sales into liquid cash for loan repayment. In turn, immediate money is given to you at a nominal interest rate for business use. In other words, you get capital from your future credit card sales to fulfill your short term funding requirements. Like paying back vendors or pumping money in to the company for growth.

So how does merchant cash advance work? A provider purchases future credit card receivables from the business proprietor. That is, the provider loans funds on the business owner's potential credit card receipts. In essence, merchant cash advance is not a loan to the client receiving the money. Rather than borrowing money, the merchant is selling an interest in his or her future credit card receivables. Provided that the merchant's charge card receipts does not drop under 50 transactions per month, produces a minimum of $5,000 in credit card sales, has owned the business for the past 12 months and can not have any open bankruptcies or foreclosures, then the merchant is qualified to receive a cash advance. Payment of the money is achieved from credit card receipts so the business must accept charge cards from buyers. There's no payment date and no fixed payment, to ensure that when sales are down, the payment rate is also low and whenever the months are up and business is good, the payment rate also goes up as long as the merchant can afford it.

2 comments:

  1. I have found here lots of interesting information from this blog,Thanks for sharing!Have you heard the term, Merchant Cash Advance recently? It is becoming a very popular way to hold your business over during a cash flow lull.You can avail your quick Merchant cash advance loans by submitting your request at shorttermcredits and get the amount as soon as possible

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  2. Thanks for sharing.Merchant Cash Advance is one of the highly preferred cash advances that can be availed quickly to overcome the immediate financial requirements in a business. It can be availed either by a startup for its development or by an established company for further development or expansion. An MCA is availed in accordance with the assumed future outcome of the credit sales of the company. The advantage of availing a merchant cash advance is that it can be availed soon.Do you need quick funds for your business but cannot repay immediately? Get merchant cash advance funds and repay small amounts when there are credit sales.

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