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Jewelry Stores Merchant Cash Advance Loans
Jewelry Stores Merchant Cash Advance Loans
If you need money in a hurry, a merchant cash advance can be the best way to get it. The amount of your loan is based on credit card sales over the past two to six months. Generally speaking, you can borrow up to $2 million for almost any purpose. This can make it easier to hire employees, buy new equipment or otherwise help your company grow.
How Long Will It Take to Get My Money?
As a general rule, it will only take a few hours for your application to be processed and approved. After your application has been approved, it will take another few hours before the money is in your bank account. However, if you apply for funding on a weekend or holiday, there may be a slight delay before you receive your cash.
When Do I Start Repaying the Jewelry Stores Merchant Cash Advance Loan?
You start repaying your loan the day that you receive your advance. Every time you make a credit card transaction, the lender will hold up to 20 percent of the transaction back. Merchant advance companies will give you up to two years to repay the loan. However, it may be in your best interest to repay it sooner to minimize the amount of interest paid on the balance.
Have the Money to Fulfill Large Orders
It is difficult to grow your business if you aren’t able to accept and fulfill large orders. Even if your customers love your product, they could opt to do business with a competitor you can’t meet their needs. With a cash advance, you get the temporary funding needed to take on larger orders or take on new clients. This can be especially beneficial during the holiday season or other times of the year when business spikes.
New Companies Struggle to Get Traditional Financing
Getting a traditional business loan from a bank or other financial institution can be difficult. This is generally true even if your business has a good credit score and is showing solid growth. Typically, a traditional lender wants to see that your company has a track record of consistent revenue stretching back at least two years or more prior to applying for financing.
When you apply for a merchant cash advance, the requirements to obtain financing are less strict. In fact, it doesn’t matter if you have good credit, bad credit or no credit at all. As long as you accept credit card transactions, your company stands a good chance of getting the cash advance it needs.
We Work With Almost Every Type of Company
Companies in certain industries may find that banks and other lenders do not want to work with them. Generally speaking, companies that sell tobacco, guns or other controversial products may be spurned by their local bank or other large lenders. While there is no guarantee that a particular business will be approved for an advance, companies in most industries will at least have their applications considered.
You Could Get Lower Interest Rates Elsewhere
For the sake of transparency, it is important to know that you have other financing options that come with lower interest rates. For instance, you could apply for a personal loan or a home equity loan that have interest rates below 10 percent. Fixed loans may also be beneficial because you know what the monthly payment is and when the loan will be fully repaid.
Companies of all sizes need access to capital to thrive and grow over long periods of time. With merchant cash advances, new companies or those looking to grow into larger businesses gain access to money at a reasonable cost.
merchant cash advance vs bank loan
A merchant cash advance is a way for companies to liquidate their accounts receivable. This can make it easier to hire employees, buy buildings or take other steps needed to grow a business or to stay afloat during lean times. Let’s take a closer look at how you can get such an advance and the potential benefits of doing so.
You’re Selling Your Accounts Receivable
When you obtain a merchant cash advance, you are selling your company’s accounts receivable for cash today. In many cases, customers will ask for 30 to 90 days to make a payment after your business has provided a good or service. For smaller companies, this may result in consistent cash crunches. In some cases, even larger companies may prefer to have a portion of their cash today as opposed to waiting months to receive full payment.
You’re Not Taking Out a Loan
Since you are selling what amounts to an asset the company owns, the transaction is not considered to be a loan. Therefore, there is generally no need to through a formal credit check process. Instead, a factoring company will take a look at your sales figures over the past six months when determining how much to let your company borrow. It may be possible to borrow up to $250,000 or more depending on your recent sales.
The Application Process Is Fast and Easy
The application process generally only takes a few minutes assuming that you have the proper financial information by your side. If you have any questions about the process of obtaining an advance, you can start a live chat or make a phone call to a customer service representative. Furthermore, you can have a loan decision in a matter of minutes or hours. This is idea for when your company needs money quickly to pay a vendor or to make payroll.
What Is the Repayment Process Like?
You repay a merchant cash advance with a percentage of your daily credit card receipts. Generally, you will have 10 percent of your revenue withheld each day until the balance is paid plus any fees charged by the factoring company. You will be told the factor rate for your advance prior to accepting the loan proceeds. The first payment is due the day that you receive the funds.
What If You Can’t Repay Your Advance?
There are many options that may be available if your company is unable to repay its advance. First, it could choose to refinance the advance into a traditional loan and use the money to pay off the factoring company. Alternatively, your company could choose to refuse to pay off the balance and take its chances in court. In some cases, factoring companies will not file a lawsuit in an effort to get its money back. Lawsuits are especially uncommon when a company goes into bankruptcy.
Expect to Have a Long-Term Relationship With a Factoring Company
Usually, you will have a deal to buy accounts receivable that lasts for many months or years. This makes it easier for both sides to benefit financially from the arrangement. In some cases, a factoring company will decide to buy a certain number of accounts receivable or a certain dollar amount of receivables. It is important that you read the factoring contract to determine the exact details of your agreement with an advance provider.
Factoring loans can be powerful tools to help your company succeed. However, it is important that you understand what they are and what your obligations are after entering into a deal to receive one. It may be helpful to have an attorney review the deal to ensure that its terms are in your company’s best interest.