Everest Business Funding
Being a business owner is a lot of work, and you never stop thinking about the future. Will your business grow? How can you ensure you get your business to place you want? Are you making the right decisions? Can you do something to help grow right now? There is rarely a right or wrong answer, but you know that having additional capital can help you grow your business. By having the funds on hand to make purchases, hire new people, and make big decisions, you know you can help your business grow larger and more profitable. The problem is many small businesses simply do not have the funds to grow right away. It can be an endless cycle of feeling stuck. You can grow and make more money, but you have to have money to help you do that. When does this end?
Finding funds as a small business owner should be easier, but it’s often difficult. You can find investors, but many investors are uninterested in a small business without so much growth potential they cannot make millions of dollars a year. There are small business loans, but many lenders are unwilling to lend money to small businesses that have not been in business very long. You need to have an established business history. You need a good business credit score. You also need a good personal credit score. You need to be able to show a comprehensive and very detailed business plan that outlines how you will use the loan you’re applying for to grow and make more money. If a lender is unable to see your vision the same way you see it, they can tell you they’re not lending you the money.
What happens when you cannot get a small business loan to help you grow? You’re out of luck, right? Wrong. You have other options. There is a way to find money right away, and it’s called a merchant cash advance. You can have the money you need to grow your business in your bank account in as little as two business days from the time you submit your application. It’s an expensive form of borrowing, but it can be exactly the second chance you need.
What is A Merchant Cash Advance?
It’s not a loan. There is no underwriting process, but that’s a good thing. You don’t have to provide nearly as much paperwork, which saves you a significant amount of time when you’re waiting on the funds you need to grow your business. You also get your funds much faster. Most are funded in only a few business days, which means you’re not waiting six weeks or longer to have access to the money you need to pay your business bills.
It’s not a loan, which also means you’re not paying it back over the course of many years. Loans come with a monthly payment in a set amount. This is not a loan that comes along with a set amount. You do not repay once a month a certain dollar amount or more to pay off your loan faster. Merchant cash advance repayments are made every day. The lender takes a portion of all your credit card and debit card sales and uses those to make daily payments via ACH to your bank. This means you’re getting the money you need, but they are getting it back faster.
A merchant cash advance doesn’t take years to pay off, and you can afford the payments each day even when your sales are slow. Your interest rate dictates the dollar amount you pay back each day. That rate is from your sales only. If you have a slow sales day, you have a lower payment day. This is why it might take anywhere from three months to a full year to make your repayments. If you make a lot of sales, you can pay off your cash advance a lot faster.
The one thing you must be careful of, however, is the fact that it rarely pays to pay off this kind of advance earl. You won’t find yourself saving money on interest. You still pay that regardless of the amount of time it takes you to pay off the advance.
If you’re unsure if this is the right way for you to borrow, consider your options. If you don’t have the time to wait to fund a loan, you can get money in your pocket in as little as a few days. If you have a bad credit score, you can get money in your pocket regardless. Your rate will be higher, and you must be able to repay the advance or risk needing to borrow more money to make payments. If you can use this money wisely, it’s a wise decision to use it as an investment.