Do you have a business that needs a boost in funding? Have you considered a merchant cash advance? It can solve cash-flow problems for many businesses, including startup firms. Consider looking over the possibilities for business funding Livonia.
Merchant Cash Advances
If your business needs funding, a loan may not be the best option. In many cases, they are difficult to qualify for and the waiting period on a funding decision can seem like an eternity.
A better option may be a merchant cash advance. In this form of financing, you receive a fast decision on a quick, up-front infusion of working capital. You repay the advance using a small percentage of your operation’s future credit card income from sales.
These are not traditional loans. Therefore, you need no collateral. You can use the funds any way that is good for your business model. For example, you may wish to
- Enlarge your business
- Buy new equipment
- Try out a new product line or two
- Pay off debt fast
Paying back the advance is simple: The financing agent takes a pre-agreed and small percentage of future business credit card sales. This money is paid back incrementally on a regular basis, generally monthly, directly by your credit card company.
How to Get Qualified for a Merchant Cash Advance
Funding agents that provide merchant cash advances are primarily interested in the cash flow of your business, not its or your credit rating. The agent will ask for several months of business credit card records in order to make a decision about your qualification. You will probably need to have been in business at the same location for at least a few months and have accepted credit card purchases during that time. The amount you can borrow will probably be limited to under 10 percent of your gross business income.