subject: Searching For Merchant Capital In Restricted Credit Market [print this page] There are various moments in the natural existence of a small business when merchant capital becomes a genuine necessity to survive or to grow. Whether the entrepreneur requires funding to keep their doors open or extra funding later in the duration of the business to expand and succeed, securing funds can be difficult.
Merchant capital can be obtained through many different places. Family and friends, conventional bank loans, credit card advances and more, are all viable options. Nevertheless, for a small business owner that has established themselves in their business for a minimum of six months, there is the option of attaining financing through a merchant cash advance as well.
Many entrepreneurs find that utilizing the collateral of their future Visa-MasterCard revenues they can get immediate, solid funding. The most important stipulation in receiving such financing is a history of credit card processing transactions using your monthly merchant statements. Surely, small business owners needing these methods of financing are commonly fairly young in age, and therefore will not be approved for a traditional bank loans. Fortunately, small business cash advances, those under $200,000 per business location, are readily available through different merchant account agents.
When a merchant obtains funding from these type of financiers, the payment schedules are ultimately tied to credit card revenues as seen on a day to day basis. That is a particular strength in today's economic climate, as transactions one month can differ greatly from revenues in another month. An agreed upon part of sales called the "daily capture" goes to paying off the balance rather than a fixed amount.
An additional advantage to working capital strapped merchants is that a merchant capital advance is usually approved and the money is made available within a few working days. No conventional bank can review and turn around a loan package that fast.
