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Business Cash Advance for
Smart Merchants and Business Owners
Author:
Genie
Business cash advances pave the way to new and better types of
funding opportunities for merchants and business owners. The industry of
business cash advance is growing at a rapid rate. This ever increasing
growth is happening because the traditional bank loans are not meeting
the demands of small business owners. Merchants need money quick in
order to respond to their pressing needs and business issues. The
traditional bank loan process is not very responsive to the needs of the
typical merchant. The process is long and because of the underwriting
requirements it can also be very intimidating.
Business cash advance is a unique funding method and not a loan. It is
nothing but a purchase of future credit card sales from the merchant. A
cash advance company purchases a portion of the future credit card sales
of the merchant at a discounted rate.
One of the the biggest advantages that the cash advance business offers
is that it involves no collateral and no guarantee. Instead of using a
personal guarantor to get a business cash advance the owner can sell his
future credit card receivables at a discounted price to the cash advance
business companies.
A business cash advance provider will give a certain amount of cash
advance to the business owners. In exchange, the business owner agrees
to pay back the full amount and the fee, by giving the provider a daily
percentage of their visa and master card sales until the payback is
completed.
The daily payback percentage will not be greater than 10% of daily gross
sales. This daily percentage is based on parameters like, the monthly
credit cards sales volume and the amount of cash advance required. The
payback time frame is usually structured for a 6-9 months term, but it’s
not a fixed term. Also, there will not be any penalties if the time
frame is exceeded.
Business cash advances differ a lot from the traditional bank funding
programs. The application process of business cash advance is usually
quick and simple. Generally, the cash advance providers do not have a
fixed repayment amount like banks, as the repayment is directly related
to the amounts and dates of credit card transactions of the merchant.
Obtaining immediate cash from the bank can be a difficult task for most
business owners which include retail businesses, restaurants or store
franchisees. These business owners mostly use credit card
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