By now many of you have heard of merchant cash advances. How about
credit card factoring? Maybe you even considered getting one these types of loans yourself. But did you know that more and more small businesses are using them for larger projects and their daily cash flow needs?
The reasons for this are simple;
1. Qualifying for a merchant cash advance is a whole lot easier than trying to get other types of business loans
2. Business owners with poor credit are approved much more often that with bank loans. This is why it is often called a Bad Credit Business Loan.
3. Flexible payback schedule– repayment is based on daily sales volume, not a flat rate like bank loans. When you sell more you pay more, when you sell less you pay less.
4. You don’t need to use collateral for merchant cash advances. Which is why I like to call them poor credit unsecured loans.
5. Generally you can get a lot more money from a merchant cash advance that you could get from a traditional bank loan.
6. Unlike traditional bank loans, you are not told what you can use your funding for.
7. The application and approval process is quick and easy.
8. Your funds are available in about a week instead of the 4-8 weeks it takes the bank to get your funds.
More than likely, the current financial crisis has played a major role as to why merchant cash advance loans are gaining in popularity. Business owners are finding it more and more difficult to get the short term loans they are accustom to. They depend on these loans to keep a steady cash flow and to keep their business running.
What many seasoned business owners understand is that when the economy slows down, it is not the time to pull back on their marketing efforts. A business cash advance is a good way to keep your business afloat in troubled financial waters.
Another good business strategy during troubling financial times is to expand your business. I know it sounds crazy but is send a very positive message to your market and people respond.
Of course merchant cash advances aren’t always the best choice for all loans. Every small business’s needs are different. I would suggest looking into both methods first.
But if you are a business owner who has been turned down for loans already, have questionable credit, don’t have collateral or needs money quickly; a merchant cash advance may be the best choice for you.
Chris Ronk writes articles about business and finance for
Rapid Merchant Cash Advance
