The Benefits of Merchant Cash Advance
A smart businessman would always look for ways in which he or she can have new and better types of funding opportunities. If you are one of these hardworking businessmen, then you must know that merchant cash advance is very helpful. Recent studies suggested that the industry of business cash advance industry continues to rises each year. Merchant cash advance continues to grow in a rapid rate because small business owners think that traditional bank loans cannot meet their demands. Many businessmen are now starting to appreciate the unique funding method of merchant cash advance.
A merchant cash advance lender provides the business owners a sum of cash advance up front. In return, the businessman needs to pay back the principal amount including an additional fee and at the same time, the business owner should give the lender a daily percentage of their master card or visa sales until the payback has been finally completed. It is important for you to know that daily percentage is based on the amount of cash advance required and the monthly credit cards sales volume – expect that it won’t we higher than 10% of daily gross sales. You should also know that the time frame of the payback is structured for 6 to 9 months terms, however, it is not fixed. If it takes longer, then there still won’t be any penalties.
It can be a daunting task to obtain cash from the bank if you are a small businessman. However, lenders use credit card processing and it makes merchant cash advance a great opportunity for every businessman. Indeed, merchant cash advance has many advantages. A lot of business owners who tried merchant cash advance can attest how awesome it is since money is available much faster than it is with a bank loan. The liquidity is immediate and the whole process is very simple. You can find the best merchants out there that can give you money as fast as 10 days. Many businessmen who had an experience with merchant cash advance could say that its programs are cash flow friendly. And the best thing about merchant cash advance is that there’s no need for you to risk your personal assets since it requires no collateral.
However, before you start choosing a merchant, it is important that you consider some few things first. It is important that you do a research on the web and look for the best lender out there. It is also helpful that you take the time to read blogs or online articles that provide helpful information about merchant cash advance and how it can help your business. Also, before you choose a merchant, make sure that you visit their website and check their credentials and their background history.
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