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New Hampshire Merchant Cash Advance[yoast-breadcrumb]
New Hampshire businesses looking to get quick access to capital may be interested in learning more about a merchant cash advance. A merchant cash advance is not a loan. Instead, as the name implies, it is an advance that a business gets that allows them to cover some of the unforeseen expenses they may need to deal with.
Businesses can turn to a merchant cash advance as a quick way to get the financing they need without worrying about putting up collateral. Even if a business or a business owner does not have the best credit, a merchant cash advance can still work for them. Depending on the circumstances surrounding the application, funding may be available in as little as two days from the date of application.
What makes a merchant cash advance different from a loan? With a merchant cash advance, what you’re doing is saying that you are going to be advanced money that you will reap a based on a percentage of your business’s daily credit card and debit sales. In addition to repaying the money that you have been advanced, you will also be charged a small fee.
Factors to Consider
When determining whether or not a merchant cash advanced is right for you, it is good to consider a few factors. First, a merchant cash advance allows you to get the quick access to financial resources that you need. However, quick money is usually expensive money. A merchant cash advance is no different. You are going to pay fees that are higher than what you would pay with a traditional loan.
When you get a merchant cash advance, the approval process is very easy. You will be asked for some information about your monthly income and for verification of your credit card receipts, bank statements, and personal identification. However, when you get an advance of this type, you’re going to have less flexibility when it comes to changing merchant service providers.
One of the major challenges that businesses have in getting loans from financial institutions like a bank has to do with their credit. If a business has bad credit, it’s almost impossible to get a loan from a traditional bank. However, with a merchant cash advance, bad credit is accepted. However, since payments are made by daily deducting from your credit card receipts, your business is going to see a reduction in its cash flow.
Is This Advance Right for Me?
This is a valid question. If you have a business but because your business is new you don’t have a lot of collateral or if your business has a low credit rating, a merchant cash advance might be the answer to the financial problems you are facing. These advances are designed for small businesses, especially those that are just starting. The eligibility standards for this advance are a lot lower than what you would see with a traditional loan. The majority of small businesses have no problem qualifying for the advance.
Additionally, if your business makes a lot of revenue via credit card payments, like if you own a restaurant or a retail store, a merchant cash advance is going to work well for you. It is an excellent short-term financing tool. It can give you the capital that you need so that you can go out and buy the inventory your business requires, payback debts, or address unexpected expenses that arise from unforeseen occurrences.
If your business is like most other businesses, it could benefit from some extra capital. Going to the bank and applying for a traditional loan may require time and energy that your business does not afford you. Even if you do take the time to fill out an application for a bank loan and send it off, if your business is new, if your credit is bad, or if you do not have a lot of collateral, there’s a good chance that the answer you’re going to get is no.
A merchant cash advance can help you as a business owner to get the financing you need in a prompt way. Although a merchant cash advance is one of the fastest financing options out there, it is good to remember that it is also one of the most expensive ways to get access to capital on the market today.