For the fund strapped merchant, unsecured business loans provide access to necessary working capital under criteria that plenty of ordinary lending institutions would not even consider. New entrepreneurs often find out the irony of requiring working capital to get their business started, but not being able to get approved through a ordinary lending institution because they don’t have an established a business history. The availability of a business cash advance can bridge the gap and facilitate the funds they require within a few working days.
When you contemplate the suggestions made for funding new businesses, merchants, you will notice that specific sources come up almost every time. Family, friends, retirement accounts, savings, credit card advances and more are frequently recommended as the perfect sources to obtain much wanted working capital on short notice. Unfortunately, while these are great sources, many of them have conditions attached. Business cash advances, a type of credit card factoring, are specifically business transactions, which make them more appropriate for small business purposes.
A business cash advance is a business product where an entrepreneur sells their future Visa-MasterCard receivables at a lower rate in order to obtain fast access to necessary working capital within a few working days. These agreements involve a flexible repayment term, based upon Visa-MasterCard revenues on a daily basis. It is common that the credit card factoring company require the merchant to utilize only its credit card processors in order to keep record of transactions more accurately in order to arrive at the daily repayment amounts.
Not only do business cash advances open up access to required cash, it is frequently available to newer entrepreneurs without a long history or excellent credit. As pay back is tied to the entrepreneurs Visa-MasterCard receivables, a month of low revenues does not put a damper the finances of the business like a ordinary business loan with a fixed pay back term will do.
A merchant advance is a great source of funds for many merchants, and are more easily procured than conventional bank loans in terms of approval conditions and processing time.
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