Are you missing out on business growth due to lack of funding? Are you tired of waiting for weeks or months for loan approval? Is your bank asking for an array of redundant financial documents? Do the countless outlandish questions get on your nerves? Are you looking for a quick and trouble-free way to procure resources for your business and get ahead of the competition? If yes, then a business cash advance, also called a merchant cash advance is just what you’re looking for.
Business cash advance is a loan option that is revolutionizing the the face of the financial industry. While a traditional loan application is approved in weeks or months, business cash advance providers release funds within a week, sometimes in just about three days. The application is available online. The form is quite easy and can be filled in a few minutes. Further, you don’t have to furnish loads of proofs for approval.
This is how business cash advance application works:
1. Creating an account with an approved credit card processor
Business cash advance is not a loan, rather an advance purchase of your business’ future credit card receipts. Thus, to receive a business cash advance funding, you should have an account with a major credit card processors. Open an account with the permitted credit card processor and start accepting credit card payments at least six months before submitting your application.
2. Submitting an application for an advance
Business cash advance providers need you to submit only your credit card processing statements with the application. Your application is evaluated on the basis of two criteria – number of months in business and average monthly credit card receipts. Most providers will expect you to be in business for a minimum of 6 to 9 months with average monthly credit card receipts amounting to $5000 or more to be accepted for a business cash advance.
3. Finalizing the business cash advance
If you are approved for the business cash advance, you will receive a contract from your provider. This will specify four critical pieces of information.
- Future credit card receipts amount: This is the volume of the credit card receipts that you sell to the provider for receiving the cash advance. It also gives you the total cost of the advance.
- Cash advance amount: This specifies the total amount of money the provider will advance to you.
- Percentage of daily credit card sales: This specifies the percentage of credit card receipts you will repay to the provider each day. This percentage should be fixed at the start and not change through the payment period. Watch out for vague clauses that can be used by unprincipled providers to change this percentage at a later stage.
- Penalty terms: The terms are specified to apprise you of likely actions in case of contingencies.
Scrutinize the contract with a fine toothcomb. Make certain you understand each term and condition specified in the contract. Remember that business cash advance is not a loan. Your contract is the only legal protection against dishonest providers. Once you sign and accept the agreement, the advance will be released within seven days or less.
Business cash advance is a quick and painless financing option. Make the most out of your merchant advance funding by learning about the application process. Daljeet Sidhu is the author of this article.