To get funding for your business you can apply to traditional banks and other lenders as well. The great thing about alternative funding options is that they will help you stay away from the hassle of dealing with the long and often tedious process of getting funds from your bank.
Funding Your Small Business
Small business owners often look for a convenient and affordable business loans to finance their company. Today, a merchant cash advance is a popular type of business funding, which is increasingly being chosen by more merchants.
A merchant cash advance can be characterized as a smart business funding alternative. It enables you to enjoy fewer requirements, flexible repayment schedules, and quicker access to funds. You can apply for a cash advance to not only finance specific purchases like equipment and inventory, but also to acquire marketing resources, expand your team, and grow.
According to economist and former US Treasury Secretary Larry Summers, the ease and quickness of online lending are going to make online lenders reach over 70% of small businesses. To fund your small business, consider turning to firstamericanmerchant.com. First American Merchant (FAM) is a top rated payment processor that specializes in the high risk sector.
What is a Merchant Cash Advance (MCA)?
A merchant cash advance (MCA) allows for receiving funds as an advance against your future sales. You’ll be required to pay a specific percentage of your sales through a garnishment to your transactions. As a more flexible solution, a cash advance implies lower repayment requirements when your sales are down, and faster repayment when your sales are up.
Merchant cash advances and traditional business loans enable merchants to garner funds that are paid back incrementally until you fully pay the loan or advance. However, MCAs have no legal definition, thus they cannot be regarded as a loan. Be aware, a merchant cash advance is not reported to credit bureaus.
The rates of an MCA are based on a number of factors. Generally, you’ll be required to pay back 10% – 35% for each transaction, until you repay the amount borrowed. Rarely, you’ll come across providers that require 60%, depending on the size of the business, the terms of repayment, and the risks involved.