If you are just a small business that wanted to grow more and you require capital, there is a type of loan that will surely help you get the right financing for your company or business and that will surely look a good deal.
This type of loan is called Merchant Cash Advance or commonly known as MCA or Business Cash Advance. This loan has been known to carry an annual percentage rate which is the total cost of the loan including all the fees in a triple-digit. This type of financing offers cash advance to businesses or companies that needed quick cash only against a future sale. As have mentioned above this type of loan works only on businesses that have a steady volume of credit card sales that includes retail stores, medical offices, restaurants, and many more. Those businesses mentioned receive a lump-sum of payment from a lender and then they can pay it back as they make a sale to their customers. Get more interesting details about business loan check this site.
Here are some of the advantages when you consider this type of cash advance.
- First and foremost, you will receive a lump sum of cash or funds quickly when you consider this type of loan. With this type of cash advance, you won’t have to wait longer – more than a week or even months to have the money that is deposited on your account or company’s account. As you are a businessman, timing is one of the most critical factors for any successful company or business and having an improved cash flow could be so beneficial.
- As a company owner, you do not need an impeccable credit. This means that your odds of getting approved from your cash advance are higher than a loan or ever on some credit cards. The application process of this cash advance is very simple and that can be often completed online. Besides, even if you do not have a stellar credit score, you can still be qualified. You just need to take note that one of the most important requirements that this type of cash advance needs you to have is that you, as their applicant, can make a certain amount in a business credit card sales each of the month because this factor will show the finance company that you will be able to remit the advance responsibly.
- There is no set payment amount. This means that this type of cash advance is not a typical loan. You do not owe a set monthly payment and won’t be given a set of the repayment term. Alternatively, you or the company is agreeing to a lump sum of cash in exchange for a portion of your company’s future credit card sales. And because of this, by taking out a cash advance, you are not typically borrowing money, but you are selling a piece of your future profits.