Every business needs the ability to be flexible. Without liquid assets, a business cannot react to changes, needs or opportunities that can and will arise. In the long run, the business’ bottom line will suffer and will never reach its fullest potential.
For the merchant that has been categorized as being “high risk”, securing business funding can be a real problem. Traditional lending sources shy away and refuse to offer their services. This is one of the many reasons why merchant cash advances are quickly becoming one of the most popular forms of financing for small business owners. In fact, even those that can secure funding from a traditional source are opting to apply for a merchant cash advance with a high risk provider instead.
Why? While the majority of merchants believe that a merchant cash advance is a short term loan, or a high interest advance, it is not. A merchant cash advance is simply a sale. With a high risk provider – like 1st American Merchant Advance – your future sales are purchased at a discount. The amount of sales being purchased and at what discounted cost are agreed upon by both parties.
Another reason for the increasing popularity of merchant cash advances has to do with the hassle-free process. Small business funding involves strict credit requirements, long wait times, complicated contracts and extensive documentation. All of this work, and you still risk being turned away – small business funding has very low approval rates. With a merchant cash advance, on the other hand, merchants with credit scores below 500 can be approved. With FAM, funds can be received in as little as 72 hours, and no tax returns or financials are required. The programs are both simple and flexible, and the application process is fast and hassle-free.
FAM’s popular ACH funding program is ideal for merchants that do not have a merchant account because this funding option does not require the merchant to have one to receive funding. The requirements are simple: the merchant must have a 500 FICO score, they must be in business for 6 months, have 10k in gross monthly deposits and less than 3 NSF’s per month. As a high risk provider, FAM is more than comfortable working with merchants that have the challenge of running a high risk business. FAM offers financing for a long list of industries, including: automotive repair, auto sales, appliance sales, medical and dental services, electronics, furniture, services training and more.
If you’ve been searching for the working capital your business needs in order to grow, contact 1st American Merchant and inquire after their business financing options. Unlike small business funding, your business will be judged on its performance, rather than your personal credit, time in business or financials. Contact FAM today for more information on their merchant cash advance and what it can offer your business.