Published By Credit Suite at July 30, 2016
You can get money for your business quickly by borrowing against your future credit card sales. This type of financing is known as Merchant Cash Advances.
These loans use your past and current credit card history to determine how much financing you can be approved for.
Money is advanced to you based on how much you process each month in credit card transactions.
Then a small portion of each future credit card sale goes towards paying back the merchant advance loan not interfering with your cash and check receipts.
There are no fixed repayment amounts or terms which gives flexibility to your business if you are having a slow month.
One of the best benefits of merchant advances is you can receive money in your bank account as soon as 24 hours after approval.
Another great benefit of merchant loans is you don’t have to have good credit to qualify. These loans leverage your positive credit card processing history to get you approved, not your credit scores.
There are some credit score restrictions, but in most cases you can be approved with even below average personal credit scores.
And there is no personal guarantee required and no collateral is needed.
Merchant loans can be obtained up to $150,000. How much you will be approved for will be determined based on how much you process in credit card transactions each month.
Every business has its strengths and weaknesses.
If you use credit cards as a payment source for your clients, a merchant advance can be the perfect way for you to obtain a lot of money in a short period of time.
These loans are available for businesses that process as low as $3,500 monthly in credit card transactions. And the higher you do process the higher advance loan you will be approved for.
There are no application fees and no out-of-pocket costs.
And you can use the funds for payroll, marketing, increase business inventory, pay taxes, pay rent, advertising, order supplies and equipment, expand your business and open an additional location, or use the funds for working capital.