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Please consider this free-reprint article written by:
Christine Dunbar
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Article Title: Why Your Business May Need A Merchant Cash Advance
Author: Christine Dunbar
Word Count: 513
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It is tough to keep a small business operating normally when customers have tightened up on the money belt. People are not spending as much, and businesses are feeling the pinch. So how do you keep the business doors opened when the cash flow is low? How do you financially cover operating costs? What about expansion costs? If your business is ready for growth, how do you fund it without cash? The best option for any business is a merchant cash advance.
Why Not a Traditional Business Loan
A merchant cash advance is different from a traditional small business loan. With a traditional small business loan there are many concerns. For instance, how will your business survive during a recession while waiting to hear if you qualify or not? What if you need the cash fast and the loan application process takes longer than a few days? What shall you use for financing in the meantime? With a merchant cash advance, these issues are eliminated from the scenario. The application process is quick and the money is in your hands within 72 hours.
How Do You Pay Back a Merchant Cash Advance
In addition, the repayment of the cash advance provides opportunity for you to catch up on bills. There is no set payment schedule. The reimbursement is handled through a percentage of credit card transactions. For example, if you have a productive day and customers are paying with cash, check, money orders, and credit cards, then the repayment handling is via the credit card receipts only. This leaves you with profit earnings from the other forms of payments received that day. Thus, the profits will still be able to contribute to paying salaries, bills, rent, and office supplies. It ensures your business does not skip a beat. On the other hand, if you were in the midst of a small business loan, you would be forced to pay regardless if you made money that day or not. There is no discrete scale based upon performance offered for repayments. You are stuck paying a specific amount at a certain date no matter what. It is a problem for it could cause you to be strapped for cash forcing business aspects to fall apart. A merchant cash advance prevents this situation from forming.
What are the Qualifications
A business cash advance is designed to assist with business necessities and provide money needed to continue to earn profits. There is no collateral required meaning there is no reason to stress over what if you lose the building, office equipment, warehouse and/or inventory. Your business and personal belongings stay intact. There is danger in losing your possessions if you were to choose a small business loan.
The main requirements for a business cash advance are to meet a certain amount of credit card transactions, since this is the form of repayment; to have been in business with credit report history for at least 12 months; and to be free of any bankruptcy issues.
About The Author: Christine enjoys writing about commercial lending and giving advice to small and medium sized businesses. For more information about merchant cash advances from a leading invoice factoring company, visit
http://www.fastinvoicefactoring.com
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