Wednesday, June 21, 2017

Merchant Cash Advance- A Great Help to Business Owners

The traditional banks have failed to meet the expectations of smart business owners rendering a fast booming of Business cash advance at an enormous rate. It is an exemplarily kind of funding where one gets to buy future credit card sales.  The language used in this sort of industry is different from the one used when securing a loan. The commonly used interest rate is replaced with words such as discount and payback rate.  It is purely based on a sale that is yet to happen.

 To seal an agreement once the business cash advance lenders business owners a certain amount, the business owner is mandated to give the lender daily percentage of their master and visa card sales. It goes on until the payment is completed.  It is important to note that the daily rate cannot be higher than 10% daily gross sales.  The stipulated payback time should be between six to nine months which is not fixed, and no extra penalties will be incurred in cases of payment delays.

Sometimes, business owners are bound to switch their credit card processors since the advance is automatically paid back daily. Some of the lenders do not need the business owners to change their processors since the rates will always be matched.  Having business cash advance is a great advantage to the business owners especially those in restaurants, retail businesses among others since most credit card processing.

It is easier to get business cash advance which is unsecured and a great deal to restaurant merchants and retail traders considering the simple process and immediate liquidity. The merchant cash is mostly available in ten days unlike from other financial institution which has fixed rates and fixed dates and amounts to be paid each month. Choosing merchant cash advance is an ideal option as it does not strain a business’s whether sales are made or not, unlike other financial institutions.

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