Businesses need to grow and mature, learning skills along the way. Unfortunately, mistakes happen, a payment missed or arrived late can have a disastrous effect on the credit history of the company, making the possibility of future credit from the traditional sources nearly impossible.
This can have a negative reaction for a business that is trying to grow and expand. A bank isn’t going to lend money for future business developments because of the now higher risk status.
There is an answer, there are alternative means to get the cash for the business growth and development that is not subjected to large monthly payments and long-term payment plans.
A bad credit merchant cash advance is a great way to release capital from your potential future sales and use it to grow and develop your business now. You will need to ensure that you meet the merchant account terms and conditions for the cash advancement. This can be from business turnover to the amount you want to borrow.
Payment is from your sales at a percentage rate agreed upon. If you have a great day in sales then the amount you owe for your cash advance reduces considerably, poor sales means a lower payment.
The amount of interest that you pay on the amount borrowed is the factor; times the money in the advance with the factor, the result is the total amount you will need to pay back. Make sure you are happy with this figure before you sign the agreement.
It is important to remember that when you are looking to expand your business, no matter whether you are a high-risk business, you should ensure your business is getting the best deal possible.
Therefore, even if you have suffered with bad debt, it doesn’t mean that all avenues of a cash injection into your business are unavailable; you just need to know where to go.
Contact First American Merchant for a Cash Advance