subject: Unsecured Credit Card Factoring Now Available Through A Merchant Account Loan [print this page] There comes a day in every CEOs life when strategic decisions must be made in regards to the company's future. Sometimes, these decisions must accompany some serious capital, and if you are relying on a traditional bank, then you may end up with nothing. For those incidences, a merchant account loan can be the perfect option to increase capital.
Merchant account loans are simple to apply for and provide a lot of flexibility. Dissimilar to conventional business loans you won't need perfect credit or two years in business. If you do have those things, great, however they are not necessary in order to be approved. All you will need is 4 months of merchant account statements and a 1 page application. The turn time on an approval are as short as twenty four hours and you can have the funds within a week. If that is not appealing enough, the flexible repayment schedule shows additional benefits. Local bank loans ask for a set payment each month. They don't care how that payment will reduce your cash flow or ability to meet demands; they are only concerned with getting paid.
The Way A Merchant account loan is Structured
While factoring is a growing industry and is a smart choice for most businesses, many businesses are unfamiliar with the procedure. Once you have obtained a merchant account and have a dependable track record of credit card sales, you, as a business owner, can sell a portion of your anticipated revenue for a discount to a company who provides merchant account loans, in exchange for a lump sum paid out more or less immediately.
Best of all these agreements do not require a personal guarantee. If heaven forbid you had to close your doors, you will not be liable for the remaining payments. What makes the finance company giving the merchant account loan so certain; they have been providing this type of financing for over a decade. They acknowledge that this financing model works. Cash infusions paid back in a short time period without the hurdles. By the time you pay back a bank loan, you will have paid more than double for the working capital. A merchant account loan will never be that expensive. All merchants should look at the cost of the funds and conclude if it is logical for their company. If you can grow your company or get through a tough time, then it usually will.
An added advantage of this agreement becomes obvious after you understand the payback terms. Your payments will be altered to reflect your monthly credit card sales. Some months you will give back more, others less, but it will be a small, fixed percentage of what your establishment brought in.
How and when you use the funds is your choice
A conventional loan always requires you to determine, in advance, exactly how you will apply the advance you obtain. By consulting with a factoring broker, you choose what the best use of the capital your business borrows is. Whether it is expansion, debt payoff, or repairs - it is all your choice. When you think about it, you have a steady history of success with your company up to today, why wouldn't you realize how best to put the money to use.
Prior to finding yourself in need money for your business, consider establishing a relationship with a merchant account loan broker. Find out what options can be obtained for financing important goals and how to be approved. This way, when the time comes and you need to move forward, you will be aware of what to do.
