There are many times in the natural duration of a small business when merchant capital becomes a driving necessity to stay open or to grow. Whether the merchant requires working capital to keep their doors open or extra funds later in the existence of the business to multiply and prosper, securing cash can be tough.
A business cash advance can be attained with a variety of sources. Family and friends, conventional bank loans, credit card advances and more, are all available selections. Even still, for a entrepreneur that has established themselves in their business for a minimum of six months, there is the choice of attaining funding through a merchant cash advance as well.
A lot of small business owners come to the realization that making use of the collateral of their future credit card receipts they can receive fast, solid financing. The main factor in obtaining such funding is a verification of credit card processing transactions using your monthly merchant statements. Most of the time, entrepreneurs requiring these methods of funding are for the most part fairly young in age, and therefore won’t qualify for a conventional bank loans. Fortunately, small business cash advances, those less than $200,000 per business location, are readily available through different merchant account agents.
When a merchant attains money from such providers, the repayment terms are ultimately tied to credit card revenues as seen on a daily basis. That is a particular advantage in today’s economic state, as revenues one month can change greatly from revenues in another month. An agreed upon portion of transactions called the “daily capture” goes to paying off the balance instead of a fixed amount.
An additional advantage to cash strapped entrepreneurs is that a business cash advance is commonly approved and the cash is made available within a few business days. No conventional bank can review and process a loan package that fast.
