What is an asset based loan? An asset-based business line…
Landscaper Merchant Cash Advance
Landscaper Merchant Cash Advance
When your business needs money, a merchant cash advance can help. This type of advance can fund a sudden expense, payroll or late payments for your company. With a merchant cash advance, you can get the funds you need in only 24 to 48 hours.
How It Works
This is not the same as a loan. It is an advance that is made on your future credit card transactions. With a merchant cash advance, the lender looks at about two to six months of your credit card records. They take the average of your monthly sales and give you 50 to 250 percent of that amount.
As soon as you get the advance, you immediately start paying it back. A merchant cash advance offers more flexibility than a term loan because you only pay a percentage of your sales. In most cases, this works out to between 5 to 20 percent of your credit card revenue. During a busy month, you pay the advance back faster. If you go through a slow month, then you pay back a smaller amount.
A merchant cash advance can be offered for terms ranging from 90 days to 24 months. The entire application process is online, so you can apply from the comfort of your home. If you need cash quickly, then this option is a great way to fund your business.
What Are the Alternatives?
While there are other options available, there are some drawbacks to choosing a different funding source. You can use a term loan, but you may need to have collateral if the bank only offers secured loans. In addition, a term loan requires a fixed payment. If your sales suddenly drop, you still have to make the same payment each month. While the APR offers a lower cost than a business credit card or merchant cash advance, you will end up spending more time applying for a term loan.
A business credit card or a term loan can be a decent option if you have good credit. The lender will want to see your credit score and all of your financial documents. In addition, these options take extra time to apply for. If you need cash right away, they might not be the most ideal option.
The Advantages of a Merchant Cash Advances for Landscapers
With a merchant cash advance, you get a number of unique benefits. An advance is popular among entrepreneurs because they are easy to apply for and offer flexible payments. They are a good way to get cash quickly if you suddenly have cash flow issues.
Fast cash: This is definitely one of the biggest reasons why business owners use a merchant cash advance. It takes merely a couple of hours to get approved for an advance. After you are approved, you can have cash in your account in as little as 24 hours.
No collateral needed: Banks often require collateral for loans. This is especially true if you have a new business or a bad credit score. When you get a merchant cash advance, you do not have to use any collateral.
High limits: The amount you can get depends on your credit card sales and business history. You can get an advance worth $2,500 to $2 million.
Bad credit is okay: A typical loan or credit card is only an option if you have fairly good credit. If you have bad credit, the bank will not want to lend money to you. A merchant cash advance is a fairly decent option if you have bad credit because the advance is based primarily off of your credit card sales and not your credit score.
Easy approval: Once you apply for a merchant cash advance, you can get funding in just 24 hours. You can do the entire application process online, which is a convenient option for busy entrepreneurs. All of your documents and credit card transactions can be turned in online. Once you submit everything, it takes just a couple of hours to get approved.