Tuesday, October 30, 2012

Involved in Getting a Merchant Cash Advance

When it comes to the difficulty to get standard business loans, most of the people prefer to apply for merchant and business cash advances. You can get funds to run your business from collateral, mortgage or even bank loans but these are considered to be very inconvenient and difficult to secure. The major difficulty associated with securing loans through these methods is that they involve a lot of paper works which are time consuming.
Unlike the regular business loans, the merchant cash advances are customer friendly. Most of the time you don't have to give any collateral and you can secure the loan on the basis of your credit card security. The loan will be paid off from your debit or credit card sales. Moreover you don't have to worry about the bad credits or credit balances. Anyone can secure the loan at any point of time and you don't need to convince the lender about the ways in which you are planning to spend the money. On the other hand you will have to convince the bank about the ways in which you are planning to spend the money when applying for a business loan.
In order to apply for business cash advance, a firm should have been in the business field for over a year. Besides you should have a good amount of sales which was produced through the credit cards. The amount that you receive as advance is based on the credit card receipts that you have acquired during a term of three to six months. Business cash advance is the only available alternative for the businesses if they don't qualify for the regular business loans.
There are basically three simple steps involved in acquiring merchant cash advances. Firstly, from the credit card processor you have to get the setup. This is done because you pay back the advance on the basis of credit card sales. Then you have to submit the application and get the approval from the lender. In the application you will have to give personal details as well as details on your business.
You might also have to include the credit card details. Based on the information received the lender will do certain verification and then approve or disapprove your request. The last step before receiving the advance is to sign an agreement of contract. This will include the amount you have borrowed, the rate of interest etc. It doesn't take much time to finish these processes and get the cash advance.

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