Making a Merchant Cash Advance Work for You
We've all heard the phrase 'it takes money to make money', right? That is what is known as a paradox, and it has been a problem plaguing small business owners since the beginning of commerce.
What if you did have access to instant working capital that you could invest into your business? How would you spend it? Your business is unique, only you know what would work best for your business. I'm sure that if you spend some time thinking about it you could think of quite a few good ideas that could make your business grow.
Now what if I told you that you already have access to working capital? And that it is waiting for you in one of your biggest untapped resources; your future unprocessed credit card sales.
So how do access this untapped potential? You do that with a Merchant Cash Advance. A merchant cash advance is when a private investor (or factor) purchases a portion of your future credit card sales at a discounted rate that you agree upon in advance. If everything checks out; the cash is deposited into your account in as little as 5 business days.
The reason they are able to get money to those having difficulty getting a bank loan is in the way they are paid back; they set up your credit card processor to automatically withhold a small percentage of your credit card sales. This makes it possible for those with bad credit or no collateral receive the benefits of having access to working capital. This could be a game changer for many small businesses who in the past were not able to compete with their larger competitors. I fact, up to 90% of merchant applicants are approved within 1 or 2 days.
There is something I must clarify before we go much further; although there are many advantages to getting a merchant cash advance, it comes with a price. A merchant loan is more expensive than a bank loan. The plus side is that because they use a fraction of your daily credit card sales to pay it back; you pay less on slow days and more when things pick up. This flexible payment structure makes it very easy to pay back. Before you know it; your cash advance is paid back and you are reaping the benefits of your investments.
Use the following link if you are looking for ways to build your business, or just want to learn more about a merchant cash advance.
About the Author:
Chris R. writes articles about business loans and merchant cash advances for http://easymerchantcashadvance.com