subject: Options For Business Cash Advance [print this page] Not more than a decade ago, business cash advance industry was born. Since then, lots of merchants have benefited from the innovation and convenience with what MCA providers offer to their clients. Because of the growing needs of merchants in developing their business, business cash advance loans have also changed for them to continue in meeting the needs of merchants.
The cash advance options may have changed and innovated, but the basis of it is still the same giving a business owner the cash sum he needs for his company while he sells a percentage of the future credit card sales to the MCA provider. The cash advance will be automatically paid through the deduction of the business monthly credit card sales. There are different merchant cash advance options that you can choose from for your business. These will help you customize with your business experiences.
Different Types of Merchant Cash Advances
Standard advance This type of business funding can be applicable to small businesses that are owned in no less than six months. As a merchant, you need to present a monthly credit card sale of at least $3,500 in order to be qualified for a standard advance. Also, there should be no unresolved bankruptcies and you need to have at least one year remaining on the business lease in order to avail this type of MCA.
Starter advance The starter advance is exclusively for businesses that have been recently declined for a starter advance. This program will help merchants get funded with a small amount which needs to be repaid within six weeks. The starting amount is as little as $2,000. This amount can already be a big help to small companies. If you are able to repay the business cash advance loan in due time, you will automatically get a renewal of a higher amount. These starter advances may be funded even without credit checks.
Premium advance This kind of advance provides small business funding for those who have great credit scores. The company needs to have a steady and high credit card processing before it can avail the premium cash. After that, they can choose from loan terms of up to 12 months with the lowest industry rates.
If you need a credit card sales advance for your small business, you can choose from the different options given above. You may discuss this with the underwriters of your chosen MCA provider. See to it that the program that you are getting best suits your business needs.
