Merchant funding comes in many shapes and forms, and like everything else in life, there is a bad choice and a good choice. The difference with merchant funding is that there are more bad methods than good methods – making the search hard for average merchants who rely on themselves and word-of-mouth to find a good deal. Fear not, as the best merchant funding source is closer than you think.
A merchant cash advance is what you need to look for when you are in need of cash for your business. This is not a loan; in fact, it is a “buy in” to your future sales. All you need to do is contact your merchant account processor to learn of their options. There are basically two: one for those with a merchant account, and one for those without. Both are similar, on their fees and lack of collateral, but the way that repayments are made is different. For those with a merchant account, payments are made with each credit card transaction. A small percentage is taken from that sale. For those without a merchant account, repayments are taken from your business checking account.
The “buy in” element can confuse some, as it can sound like a traditional loan. They loan you funds, and you repay them. While it does sound like a loan, there are many differences that can amount to a lot of saved money. First off, the paperwork is pretty much non-existent, since your merchant account provider already has your financial documents. Second, the lack of collateral can give you a peace of mind. There are no high and climbing interest fees, and there is a very small chance of defaulting, since payment come from your own sales when a purchase is made. To make a merchant cash advance even better, most are given their funds quickly – most within 72 hours!
Finding business funding can be tough, but the easiest thing that a struggling merchant can do is contact their merchant account provider. A merchant cash advance can give you the funds that you need, but without the downside that comes to a traditional loan.