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How High Risk Cash Advances Work

Are you interested but confused as to how a high risk cash advance works? What does this method of funding mean for you? Small business owners are turning to merchant cash advance providers for ways to receive funding.

This industry is not a recent development. In fact, it is a decade-old industry that has grown unbelievably in the past couple of years. There is now more than 50 providers to choose from. With the situation for small businesses becoming increasingly difficult, especially for those who wish to expand, cash advance providers offer growth opportunities for those that are high risk and/or have bad credit.

Many business are so-call “high risk” businesses. In fact, a lot of small businesses are considered high risk in the eyes of banks; thus, they are reluctant or refuse to offer funding. Some “high risk” businesses include: restaurants, convenience stores, retail outlets, dentists and lawyers. A lot of these establishments are “cash-incentive” businesses.

How does a high risk cash advance work? What does it mean for your business? A traditional loan differs greatly from how a cash advances works. A traditional bank loan is focused on the value of your business’ assets; thus, making it difficult if bad credit is involved and/or your business is considered high risk. On the other hand, with 1st American Merchant Funding, the cash advance is factored on the future sales of your business.

We offer help in processing credit/debit cards as opposed to having cash involved. There are no pre-set monthly repayment schedules, cash remittances are flexible and repayments are secure and automatic. In addition, if you experience a slower week/month than usual, your remittances will reflect the decrease in revenue.

Whether you are a brick-and-mortar retailer, an electronic merchant or a start-up, don’t let the common difficulties experienced with traditional lenders stunt your business’ growth. Don’t despair if you have gone through bankruptcy and bad debt is an issue.

1st American Merchant Funding specializes in securing capital for businesses that traditional lenders label as “high risk”.

Contact us today!