Small and medium sized businesses and business owners can often feel overwhelmed when cash flow ebbs. There are so many times when extra cash can be needed. Perhaps customers are slow in paying. Without paid invoices the company cannot pay its bills. Then again a business can be seasonal. Just about everyone understands that a traditional retailer generates more than 19.3% of their total annual sales in December alone. Even with January and February sales, revenue can be dismal. Many of these trials and tribulations could be solved with a Business Cash Advance from First American Merchant.
Those who are not aware of the offered service might be tempted to apply for a small business loan. The disadvantages of a small business loan during a critical cash shortage can be numerous. First, look at the timing. It could take weeks, if not months, for a small business loan. With a Business Cash Advance from First American Merchant, a business can have the needed cash in its bank account within 72 hours. And, if needed, once the business has paid down 50% of the original balance the business cash advance can be renewed.
The difference in the required paperwork could possibly save a tree. With a small business loan there are reams of paperwork to complete. With a merchant cash advance the borrower does not need copies of tax returns, financial statements, business plans, or much of the other required documentation required by banks and traditional lenders.
First American Merchant looks at the whole picture, not just a credit score. There are customers approved with credit scores under 500 as a normal practice. If you have been in business and have been processing credit cards the procedure is quite simple. In actuality you are selling a small portion of your credit card receipts at a discounted rate.
If you regularly process $5,000 a month, you could be selling 10% (an example) of your monthly receipts. The beauty of this arrangement is that your payments will vary along with your sales. You may only process $3,000 in January and on the flexible plan at 10%, your ‘payment’ would be $300. In June when your sales are $5,000 your payment is $500. It could be with a small business loan your payment may be $800 a month no matter what your sales are.
You do not have to worry about writing checks with a Business Cash Advance. Arrangements are made with your credit card processor and the agreed upon percentage is automatically deduced and forwarded to First American Merchant.
A bank or traditional lender will often ask for collateral for a short term business loan. With a Business Cash Advance your future credit card receipts are your collateral. You do not need to tie up equipment or autos with unnecessary liens.
The bottom line is that a Business Cash Advance from First American Merchant gives you the cash you need at a time your need it.
You are guaranteed fast approvals and flexible payback options, contact us today!