It is a well-known fact that larger companies with adequate working capital get finance easily on the best loan advance terms. Smaller businesses, on the other hand, find it difficult to acquire loans to meet the operating costs of the company. Small business owners should make a note that only traditional bank loans are difficult to avail but not loans from non-bank lenders. Fortunately, merchant cash advances provide quick loans to small businesses without involving lengthy procedures.
Merchant cash advances aim at providing small businesses some quick funds to help them grow and prosper. The loans are advanced to restaurants, retails shops, laundries, construction companies, traders, and manufacturers. There are many advantages of choosing a merchant cash advance loans over a traditional loan. Below we have discussed few benefits for you.
The major advantage of merchant cash advance loans is the immediate disbursal of funds, unlike traditional bank loans which consume a lot of time for matching the eligibility and collecting the paperwork. Merchant cash advances are simple and are approved in less than 24 hours, and the borrower receives funds in the account in as little as 24 hours to 3 days.
The refund of the loan amount is linked to the daily sales turnover. A fixed percentage of daily revenue is repaid as installment towards the cash advance availed. So the number of daily sales determines the amount repayable for that day. If the sales are high, then the repayment amount will be higher, and if there are no sales for that day, then the borrower is not obligated to pay any amount. The lender collects the repayment amount directly from the merchant account provider but not the borrower.
The merchant cash advance loan is considered unsecured funding which means the cash advances are collateral free. The loans are developed based on the sales of the business and not any asset or equipment. The borrower will not forego ownership of the house or shop even if the loan repayment amount defaults.
Small business owners with less than average credit rating or bad credit can avail merchant cash advance loans. The loans are advanced and approved based on the sales history and future sales forecast of the company but not individual credit history or ratings. The business should be an established one and should accept payments with credit or debit cards.
The small business owners who want to acquire merchant cash advance loans can avail them easily by simply applying for them online from the comfort of their computer. The borrowers need to have a business that is established and running to qualify for the cash advance. The application is approved in as less as 24 hours, and the funds are directly deposited to the borrower’s account in 3-4 days.
No Additional Charges
The merchant cash advance loans are free from late payment charges or any other fees.But a fixed factor rate can be charged by the lender on the amount advanced. The factor price changes from lender to lender and needs to be found out before availing the funds.
Finding right merchant cash advance loan with best factor rate can prove to be highly beneficial when compared to traditional bank loans.