The merchant cash advance business is tricky, yet it is a must for thousands of small business merchants. While some processors advertise their rates to be low, others advertise specialized service. It can be hard to find the perfect merchant cash advance for your small business, and various types of claims from the industry do not help, because not all funding sources are created equally.
Many choose to turn to their local banks for small business funding. While some can get good loan rates, the issues comes with the term “loan”. With a loan, your repayments start back almost immediately, and it doesn’t matter how your business is doing. The loan provider wants repayment, regardless. If you default, you are at risk of losing whatever you have put up as collateral, as well as having your business close up. Thankfully, this is not the only way to obtain small business funding, but many still think that a loan is the only way to go.
While a loan may work for a home or car, it should not be the first place you turn when you are in need of business funding. Whether you are in need of a few hundred dollars, or several thousand dollars, you need to check out merchant cash advance programs, like the one offered by FAM. A merchant cash advance is not the same as a loan; in fact, it isn’t a loan. It is a purchase of a fixed dollar amount of the company’s future debit and credit payments. Instead of payments being made every month, they are taken from your merchant account in increments determined by you and the provider. While it may sound complicated at first, the process is easy.
While business funding options seem endless, all small business merchants should check out their merchant cash advance options before turning to a loan. Not only is the application quick and painless, but there are no tax papers to file, since this is a purchase and not a loan. With the right merchant cash advance program, your business will be back to booming in no time.