Merchant Cash Advance Loan
Did you take in any credit card sales this month? How about last month? Add those up and estimate how much you’ll be bringing in over the next few months and you’ll have a number you can take a cash advance on. It’s called a merchant cash advance loan and it’s not all that difficult to get. If you have a merchant account and can show regular recent activity on your account, you should be eligible for a cash advance against that activity. Most merchant cash advances are set up to allow you to pay back a percentage of future sales until the balance is paid off, so you’ll barely notice the payments.
Merchant cash advance loans are basically unsecured loans. You’re not putting up actual assets and you don’t have any guarantees that credit card sales will be made. The bank or lending institution is taking a chance on sales projections, so this type of financing is classified as unsecured. In order to qualify, you’ll most likely need to have a solid credit history or records of steady credit card transactions over a significant period of time. Some lenders are stricter than others, so here at SmallBusinessFinance.net we submit your application to all of them. You only have to fill it our once, though.
Merchant cash advance loans are not the same as accounts receivable loans. Future credit card sales are not money owed, even if your customers are on an auto-pay cycle. That type of payment plan is typically used for an ongoing service and can be cancelled by the credit card holder any time. If they have made a purchase, have the item in hand, and are making payments on it over time, then those payments counts as accounts receivable. Knowing the difference is important when you get to the final stage of the cash advance or loan process.
If you’re s small business owner and weren’t aware of some of the information in this section, don’t worry. You’re not alone. That’s why SmallBusinessFinance.net was established – to give you an opportunity to fill out one form and let us find you the loan that is right for you. It’s not necessary for you to be a finance expert or to have a high credit score to use this site. Register now and we’ll find you the money you need.