Are you missing out on business opportunities due to a shortage of funds? Are you tired of waiting for weeks or months to get your business loan sanctioned? Is your business financing application asking for an array of unnecessary financial documents? Are you fed up of all the intrusive questioning surrounding your loan proposal? Are you looking for a quick and hassle-free way for getting a line of credit for your business and gain advantage over your competition? If yes, then a business cash advance, also called a merchant cash advance is the solution to your problems.
Business cash advance is a funding alternative that is revolutionizing the world of business. While a traditional loan application can take months to process, business cash advance providers release funds within a week, sometimes in less than 3 days. The application is available online and is easy to fill. Further, you don't have to provide a multitude of financial documentation to get your application approved.
The application process works in the following manner:
1. Lining up an Approved Credit Card Processor Business cash advance is not a loan, rather an advance purchase of your business' credit card receipts. Thus, to receive this type of funding, you should already be processing major credit cards like Visa or MasterCard. Open an account with an approved credit card processor and process credit cards for at least six months before submitting your application.
2. Submitting an Application Business cash advance providers need you to submit only your business and credit card statements with your application. Your application is evaluated using two criteria, number of months in business and your average monthly business income. Typically, you are required to be in business for a minimum of 9 months and have an average monthly credit card receipts of at least $5000 to be eligible for funding.
3. Evaluating the Cash Advance If your application is approved, you will receive a contract from your provider. This contract will specify four crucial pieces of information.
* Future Credit Card Receipts Amount - This specifies the amount you sell to the provider for an advance. It is also the total cost of your advance.
* Total Loan Amount - This specifies the amount of money you will receive from the provider.
* Percentage of Daily Credit Card Sales - This specifies the percentage of credit card sales you will repay to the provider every day. This percentage should be fixed. Watch out for hidden clauses that allow unscrupulous providers to manipulate this percentage at a latter stage.
* Penalty Terms - The terms specify contingencies and the ways to deal with them.
Upon receiving the contract, read it carefully. Make sure you understand every term and condition specified in the contract. Remember that the business advance is not a loan. Your contract is your only legal safeguard against fraudulent providers. Once you sign and submit your application, business cash advance will be released, usually within one week or less.
Business cash advance allows you to receive funds quickly and easily. To make the most of your funding, familiarize yourself well with the funding and the application process.