If you own a company and are having trouble qualifying for and securing a loan from your bank, merchant cash advances could be one of your most viable options. When you have a cash crunch but are assured that your company has enough cash flow to service the debt, cash advances can be especially useful. The conditions for receiving a cash advance are less strict than those for obtaining a loan. You must be at least 18 years old, have a reliable source of credit card sales revenue, and have a checking account to qualify. Processing, acceptance, and disbursement are all completed quickly, making it perfect for when you need money quickly. Find additional information at Alternative investment crowdfunding
Having a cash advance from a retailer has a range of advantages.
Even if the amount a company pays in merchant cash advances is greater than the principal and interest it would pay on a traditional bank loan, the speed at which the loan is accepted makes this a particularly useful credit facility when cash is needed quickly. Many companies consider the high cost of the advance to be a minor concern due to the necessity of acquiring cash for their operations.
Your credit history is of little concern to merchants; however, you must have a clean credit history to apply for traditional loans. If your credit score is poor, your chances of getting a loan are slim, making borrowing difficult. You just need to prove that your company has been receiving credit card sales for the past 60 days to qualify for a cash advance. When it comes to merchant cash advances, cash flow is much more critical than credit history.
Merchant advances only require receivables for your credit cards as insurance, so they require little to no security. In contrast, when applying for a traditional business loan, you would be required to have not only evidence of ability to pay, but also protection in the form of business equipment and property.