subject: Businesses Flip to Merchant Money Advances as Business Loan Alternatives [print this page] Even because the economy begins to flip around, banks remain hesitant to extend credit to small businesses. After a lengthy application process and rigorous audit of the business's monetary documents, several business owners are returning up short find the capital they have to grow their business. Without stellar credit and healthy financials, your possibilities of getting access to capital from traditional funding sources are slim.
Many retail business and restaurant owners have turned to the business cash advance as an alternative. The cost of the funds is typically more than what banks would charge, but it comes with certain edges:
- The appliance method is terribly simple. There's minimal paperwork required. Pre-approvals can be provided inside 24 hours, and funding usually takes place within 5 - 7 business days.
- Approval rates for qualified applicants are as high as 90%.
- Good personal and business credit isn't required.
- There is no need to pledge any assets or collateral (business or personal) so as to secure funding.
- The ways by that advances are paid back make reimbursement very flexible. A share of the business's future credit card sales, usually between 10% and 20%) are withheld by the merchants mastercard processor and applied towards the balance of the advance. A slow month in mastercard sales ends up in a lower amount paid back towards the advance. This makes it easier to cope if business slows down a bit.
- Businesses typically qualify to receive a further advance before the primary advance is entirely paid off. This varies case by case, however once the balance is right down to about fifty%, many merchants qualify for extra funds.
Businesses Flip to Merchant Money Advances as Business Loan Alternatives
