The merchant cash advance as a financing alternative is fast gaining popularity as a funding option among businesses. In the credit market, this type of advance is also known as a receivables and credit financing. A merchant cash advance involves advancing money to merchants upon agreement with the prospective lender taking a portion of the businesses future credit card sales so as to clear the debt.
Merchant cash advance for online store and telephone merchant cash advance widen the financing scope for companies that would have perhaps had limited sources of financing. This mode of financing is often easy, quick and does not require a lot of paperwork as opposed to the other financing options available to businesses. One of the most appealing aspects of a merchant cash advance agreement is the fact that, a business can remit less towards settling the debt in times of low sales and later on, pay more whenever sales volume increase.
As a financing option for online and brick and mortar businesses, the merchant cash advance is steadily being preferred over traditional financing due to the benefits associated with it. Merchant cash advances for online stores enjoy a high approval rating. Most merchant cash advance providers have been known to brief approval duration with very few rejections. This is one segment in the financing industry that a merchant is assured of a cash advance upon submission of an application.
Less paper work involved in the application process
Unlike traditional financing options such as bank loans, the amount of paperwork required in making a merchant cash advance is down to just the relevant documentation. Telephone merchant cash advance unlike other conventional financing options do not ask for a guarantee in form of collateral from the applicant.
A merchant repays the cash advanced to them with so much ease. The agreed upon percentage of credit sales of the borrower is usually remitted to the lender on a monthly basis. The repayment program is itself flexible in that, its dependant on the borrower’s monthly sales hence the remitted amount fluctuating according to the sales levels.
Should a business decide to go the merchant cash advance, research should be undertaken in the firm’s pursuit for a suitable merchant cash provider. With these providers carrying out aggressive marketing campaigns the prospective applicants are advised to engage the services of reliable third party financial advisors. eMerchantBroker is one such financial party to benefit from the resources being offered to those seeking to finance their businesses using a merchant cash advance service.
Merchant cash advances do not require a borrower to undergo through a credit inquiry to ascertain their credit rating. Typical requirements for this type of funding is the establishment of the amount of time a borrower has been in operation and the total amount of monthly credit sales. These requirements are easy to meet as opposed to the numerous and prohibitive requirements associated with other sources of funding.
Other financing options require placement of some form of a guarantee with the lender, to assure the prospective lender that irrespective of whatever the outcome, the lender will recover their investment. With entrepreneurs at times being at risk of losing the collateral given out in-order to secure a loan, Merchant cash advances for online stores provide the best option to businesses that are weary of suffering such losses.