Merchant Cash Advance Companies: An Alternative Lender

You may have finances issues when you’re starting up a business. You might have a hard time getting a traditional bank loan because of the strict lending policies from them. You also might have trouble in getting approval because of the criteria these banks have such as your business operating history and collateral amount. Whatever your industry is, getting a merchant cash advance company is a great alternative to get financing for your business.

Merchant cash advance loan companies have a fast and efficient approval process that helps business get funding immediately. It’s a convenient and fast way to have the working capital for your business. By getting a merchant cash advance, you’ll be able to obtain an upfront, huge amount of cash, which can be used for your business. This article will talk about how it works and why it’s a great option to get merchant cash advance for your business.

What Exactly Is a Merchant Cash Advance?

It is a great alternative for funding a business if you are unable to get one from a traditional bank. It was first introduced in 1988. A merchant cash advance process is created so that you can get a lump sum amount in the fastest way possible. Depending on the terms and agreement, it would be repaid at your convenience and the status of your business.

Here are some features of a merchant cash advance:

1. Fast approval. An approval usually takes the same day and once approved, your account normally will be funded within 24 to 48 hours.
2. You’ll have a higher chance to have more capital. In some scenarios, you’ll be able to access additional capital every quarter.
3. High approval. The criteria for applying a merchant cash advance is lower than the traditional financing, helping you get approved faster.
4. Does not affect credit scores. Your personal credit scores will not be affected by it, as it will not reflect on your credit report.
5. Can cater to most businesses. No matter what industry you are in, it’s likely that you can get a merchant cash advance.
6. Automatic payments. You won’t have to worry about late fees or missed payment penalties because payments are set up automatically.
7. No set repayment terms. Money is automatically deducted depending on your sales. The amount of money will depend on how much sales you had during that period of time.

Please take note that even with using one of the best merchant cash advance companies, having a merchant cash advance does not mean that it would fix your financial situation immediately. They are not created to rebuild your credit.

How Can I Get a Merchant Cash Advance?

According to ArcaFunding, getting a merchant cash advance only needs three simple steps. These are:

1. 1st step: Know how merchant cash advance works. Most are familiar with banking practices and policies of lending companies. Merchant cash advance is different from the rest because it’s like you’re making advance purchases for your products and services. It’s more of a sales agreement where they provide you the money in a lump sum and you decide where you want to use it.
2. 2nd step: Make preparations. This is the part where you apply for a merchant cash advance. They still need certain requirements, so have your documents handy for proof.
3. Operate your business. Well done. You now have the funds you need to grow your business. You can choose whatever option you want to use the money for, whether it’s for buying new equipment or remodeling or other costs. Whatever the reason may be. Think carefully on what to do with it.

Keep on reading to find out what can you do with the money that you can get from merchant cash advance companies.

What Will I Do With the Merchant Cash Advance?

The best thing about getting funds from merchant cash advance loan providers is that you can use the money for anywhere you deem fit that’s needed for your business. This includes the following:

1. Purchasing new equipment and supplies
2. Make innovations in technology
3. Update your accounting and inventory systems
4. Personalize your company’s website
5. Remodeling your area
6. Hiring more employees
7. Investing a newer product or technology that costs a lot
8. Upgrade your equipment
9. Replace old equipment.
10. Use it for promotional and marketing strategies
11. Creating a customer app
12. Upgrading your inventory or bookkeeping systems

How to Apply for a Merchant Cash Advance Loan?

Applying for a merchant cash advance loan is easy and fast. Getting an approved loan will depend on the merchant cash advance loan services you choose, according to BusinessLoans.com. The approval time will depend on the details you provide and the paperwork done. Once the loan is approved, you get can the funds within 48 hours. Here are six steps on how to apply:

1. Funds application. You will need to fill up an application form that would be one or two pages long. Details would include your personal information and business information such as your business tax ID and your Social Security Number.
2. Provide legal documents. Aside from the details you provided, they would need verification by asking you to provide legal documents such as proof of citizenship, bank statements and your business location lease.
3. Get approved. Approval is fast, the shortest time could be 2 days or within 24 hours.
4. Set you your new credit card processing. Most of the time, merchant cash advance loans requires you to set up a new credit card provider. It may seem inconvenient at first, but it’s the requirement of the approval process of most merchant cash advance services.
5. Complete the details. Make sure you understand all the details and finalize everything before it is approved. Ask if you have any questions especially about the fees and payment.
6. Get your funds. Congratulations. The money will now be deposited in your business bank account and the repayment will start automatically.

Find out more on how to apply for merchant cash advance loans by reading CrowdReviews.com’s merchant cash advance company reviews.

If you’re considering a merchant cash advance, check the following:

1. The company must understand the needs of your business. Each industry has its own needs and different processes. The company must be an effective partner for you.
2. The company needs to be reliable. Check and see what others think of them by reading their customer feedback and testimonials.
3. The company must be able be experts in your industry. Find out where they specialize to see if they match your industry and your business goals.
4. The company must have a physical office location. Location is not that important because you can sign documents electronically, but it helps if you can physically be present when you need help or for signing documents.
5. The company must be transparent with their transactions, offering you no hidden charges and explains your terms carefully and honestly. Find out what are the rates and charges they offer.

Once you have considered a company right for your business, make sure you do these steps before signing up a contract:

1. Make sure that the company specializes in your industry. Have a great understanding of the details and read the terms and conditions of the contract carefully before you continue.
2. Make sure you have a duplicate of your actual contract before you sign it. It will let you know who and what you’re dealing with. Ask questions to clarify things and consult them if you are still not convinced why you should sign the contract.
3. Make sure that you will have a long-term relationship with the company by having the same business goals and have a strong

You can compare at least two companies to find out what’s the best merchant cash advance companies right now. It will help you decide which one can offer you the best way to up you business. Additionally, look for companies that have a lower retrieval rate and not just the factor rate. When you lower the retrieval rate, it will also lower the amount you need to pay monthly and extend your payback period.

Running a business can be a stressful and daunting task. Even if you have the time and effort in your business, it will eventually fail if you don’t have the enough funds for it. Nowadays, it’s difficult in finding the right financing source. But there’s great news. You can take advantage of what merchant cash advance companies can offer.

To summarize, merchant cash advance is used mainly if you’re looking for flexible repayment terms and you don’t require making monthly minimum payments. It’s a simple and quick financing solution. This is also best for businesses that accepts and uses credit or debit cards as a payment method for customers. It is also recommended for sales that are not stable every month and consider a pay as you go option. Why don’t you consider the merchant cash advance alternative and read merchant cash advance company reviews  at CrowdReviews.com.

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Keith Moore

Keith Moore has worked with several leading Android development agencies to build customized mobile apps enabling businesses to extend the use of their services to smart phones and mobile devices.

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