Merchants big and small have issues with finances from time to time. Since we all do not have a rich uncle, we often turn to bank loans. This is the old standby for those in need of money, but it is often the worst choice when it comes to a struggling business. The hidden fees, the fine print, and the overbearing payday schedule are enough to put a barely floating business under water permanently. However, there are ways to borrow funds without sinking your business.
A cash advance for businesses is not a myth; in fact, you can have the funds in your hands in as little as three business days. Merchant account providers like FAM offer this service to their account holders, and the process is simple. The application is virtually effortless, since your merchant account processor has most of the information needed. The deciding factor in borrowing is not based on your credit score, but rather how much your business brings in. As long as you make sales (amounts vary by provider), and you have been in business at least six months, you can apply for a cash advance.
The repayment process is just as easy. With the repayment, you do not write out large, monthly checks. Instead, every business day a percentage is taken from your sales. If you do not make sales, you do not pay that day. It is as simple as that. This way, payments are repaid on an even basis, and you do not have to struggle to come up with a huge payment amount once per month, ala a bank loan. Another plus of a cash advance for businesses is that there is no collateral. There is no fear of losing your home due to failure to repayment – because there is a streamlined, daily debit of payment from your merchant account.
Whether you need to borrow a few hundred dollars or a few thousand dollars, you should forgo a bank loan, and instead speak with your merchant account provider about obtaining a cash advance for a business. The process is simple, the payback is effortless, and the end result is a successful business.