Businesses seeking cash for working capital look no further. There is a unique solution for clients who need a quick infusion of cash. It’s called a merchant cash advance loan.
The reality of the economic climate facing business owners today is that traditional lenders are toughening the requirements needed to obtain working capital. 92% of all business owners cannot get a loan from banks. Reasons include length of time in business, lack of collateral, and the owner’s poor credit just to name a few.
There are more than 30 million small businesses in the US. A very high percentage of those small business owners are digging into personal savings, taking out home equity loans, borrowing from family and friends and running up credit card bills as forms of financing. All of these options for cash advance loans require your business to take on additional debt.
Let’s explore a unique solution for business owners who need a quick infusion of capital. One of the least-known merchant financing strategies for successful businesses is potentially the single best working capital management strategy for obtaining needed capital. There are many usages of a merchant cash advance loan program or credit card receivables funding for a small business.
For any business that accepts credit cards as a method of payment, a merchant cash advance is a critical business financing tool that is often overlooked. Capital advances are based solely on the predictability of a company’s future credit card sales. A merchant credit card advance allows a business owner to get a large sum of cash now, without incurring any additional debt. The reason is simple; you are not receiving a loan. You are “selling an asset at a small discount”, your future credit card sales.
Typically a merchant can obtain between $5,000 and $1million per location. The amount depends solely on your monthly VISA/MC sales volume. We lend upto 2X monthly sales volume with repayments terms of 6-24 months.
You can use the money for buying out a partner, expansion, advertising campaign, hiring personnel, payroll, emergencies, almost anything related to your business.
Collection of the purchased credit card sales occurs automatically through the credit card processor, which sends the funding company a small fixed, predetermined percentage from each credit card sale. The payback percentage is usually between 9-15% of weekly/monthly sales. The seamless integration of processing and ease of obtaining working capital is a natural fit and an obvious benefit to businesses that cannot acquire traditional funding.
As you can see, a merchant credit card cash advance loan program can potentially be the single best working capital management strategy for obtaining needed capital. This is a vital business financing tool that should not be overlooked.