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Things To Know About A Merchant Cash Advance
Jackie Watts
Do you need a lump sum of cash to invest in new products for your business? If you earn a large sum of money through payments that are made with credit cards each month, you might want to consider applying for a merchant cash advance. The application process will likely be a lot easier than when going through other types of commercial loan companies. This article provides information that can give you a good idea as to whether or not a merchant cash advance is right for your business capital needs.
Minimal Information Is Needed to Qualify
It is common for merchant cash advance loan companies to not require as much information as other company types. For example, one of the things that many of the companies want to know is how long you have been in business. You must also be able to prove it, such as by showing your business income tax statements. The other thing that you must prove in order to qualify for a loan is the amount of money you are bringing in from credit card payments. The amount of credit cards payments necessary for approval will vary between different lenders.
No Worrying About Putting Up Collateral
The perk of a merchant cash advance is that you will not need to put up anything as collateral. Basically, if you happen to fall behind in paying the loan back, you will not have to worry about losing a valuable asset. Falling behind will also not end up effecting the credit rating of your business, as the advance will be viewed as a sales transaction.
Paying Back the Loan Will Not Be Stressful
You will never have to stress about having to make a specific payment to the loan company each month. For instance, the monthly payment can fluctuate between each month based on the amount of profits that are typically earned. For instance, flush months are considered the times in which you are likely to pay a higher payment. Lean months are the periods in which credit card payments are lower than usual.
No Rules for How the Money Is Spent
Once you have been approved for a merchant cash advance, you will not have to spend the money in any particular way. For instance, you can use the entire amount of money to pay off business taxes if you desire to do so. Apply for a merchant cash advance as soon as you are ready.
For more information, contact local professionals like Fordham Capital.
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One day a few years ago, I was forced to take a good, hard look at my finances. I realized that my husband and I were living outside of our means, and I knew that we needed to make some changes and fast. I started looking for ways to spend less money, and I was able to completely eliminate some of our largest expenses. It was a lot of work, but it really helped us to feel more free financially. This blog is here to help other people to spend a little smarter and to avoid the hassles that come along with spending more than you have.