When you open a small business, there are many things to consider. You’ll always want to keep a positive attitude and like many, you’ll tend to want to focus on the exciting aspects of small business ownership. You can keep this up for a until one’s perceived reality hits and finds themselve forced to deal with the financial aspect of running that business. You’ll want things for your business quicker than you can afford it and often times, you’ll feel as if something is missing. We say perceived reality because most of those fears can be thwarted with some organization. With tools like a MCA (Merchant Cash Advance), you’ll gain the freedom and the flexibility to make the right choices at the right time.
Why you would need a merchant cash advance:
There are times when you need extra money. There are also many situations that would prompt you to take that smart action. Small businesses that are less than 2 years old in the fledgling stage are apt to need equipment and startup costs. Yes, you still need 2-3 years to stop breaking even and make a profit if you do it right. What’s the element that’s eating your money? Apart from your equipment, it’s your advertising costs and employee salaries. A Merchant Cash Advance is a great way to start. If you use it responsibly, you can really breathe a sigh of relief.
Steps to take before you apply for any business loan:
There are several small but organized steps you need to take before applying for any type of business loan, including a Merchant Cash Advance. The first thing to take into consideration is how the funds will be payed back. If you do choose to go with a MCA, you’ll actually be paying down a revolving line of credit like a credit card. So, in this case, you need to be able to do one of two things: One, have the equipment to use as collateral or, you’ll have to surrender a percentage of your future profits. In either case, as long as you choose an amount and a repayment plan, you’ll stay in good standing and won’t have the stress you would have if you had taken out a bank loan. That is if a bank will even let you have one.
The next thing to consider is the age of your company. What stage are you in? Are you a fledgling or well established? Are you able to show a healthy profit and loss report? These are important facts you need to know because this is the minimum that you’ll be asked to provide in order to qualify for a decent loan and repayment plan.
How to apply for a Merchant Cash Advance
Applying for a MCA has never been simpler. You simply find an agent, complete the basics outlined in this article, and allow the agent to do their work. They’ll ask you what your business needs are so that they can determine what the approved amount and the repayment plan will be.