Pledgecap Business Loans and Merchant Cash Advance
A merchant cash advance is an alternative business financing option for companies that have a large volume of credit card transactions. Your business receives financing upfront and repays the advance with a percentage of your daily sales.
Merchant cash advance providers assess risk and evaluate credit criteria differently than a traditional lender. A merchant cash advance company looks at your business’ daily credit card transactions to determine if you can repay the funds according to the payment schedule. Basically, the merchant cash advance provider agrees to provide you with a lump sum of money in exchange for a portion of your daily credit and debit card sales.
Merchant cash advances are a good option for business owners that need a temporary cashflow solution for those who may not qualify for a traditional bank loan. It’s typically fast, but it can be an expensive business financing option.
There are several reasons why a merchant cash advance is a great funding alternative for businesses:
Bad Credit is Often Accepted. Traditional lenders are very strict and can deny you a loan due to a bad credit record. This can prevent you from obtaining funding for your project or business. However, one of the benefits of using a merchant cash advance as a funding source is that applicants with a bad credit history can still be approved, even if they have a low credit score.
The Approval Rate is High. Getting a small business loan from a traditional source can be a hassle. The process often involves extensive documentation, complicated contracts, and other stringent requirements. Since merchant cash advances do not require a perfect credit score or great financial history, it has a high approval rate.
No Collateral is Needed. Another advantage of a merchant advance is that it is not a loan; it is an alternative funding option separate from traditional bank loans. Because of this, it does not require collateral and the transaction does not show on credit reports.
Application Process is Fast and Easy. A traditional loan can take several weeks to finally be processed. With a merchant cash advance, you can get access to funding within the same week that you submit the application.
Simple and Hassle-Free Repayment. In addition to having a simple and hassle-free application process, a merchant cash advance also involves a very simple repayment process. Your payments fluctuate based on your daily sales. Meaning, when you have more sales the payback amount will be more, and when sales are slow you will pay back less. This revenue-based repayment plan allows a business to grow instead of draining its resources.
Merchant cash advance companies are typically more concerned with a business’ current cash flow than its future profitability. This means, if you have a consistent cash flow, you might be able to qualify for a cash advance regardless of your credit score, how long you have been in business or other business factors.
Merchant cash advances are ideal for a wide range of businesses, such as retail shops or restaurants whose revenue comes primarily from credit and debit card sales. There are no time-consuming credit checks and no rigid repayment plans. A merchant cash advance is well suited to any company that receives the majority of its payments by card.
A merchant cash advance can help with:
. Equipment needs
. Inventory Purchases
. Short-term capital needs
. Marketing opportunities
. And more!
How To Apply
A business can apply for and obtain funds from a merchant cash advance company within a few days. The application process for a merchant cash advance is simple.
Most merchant cash advance providers offer a quick and easy online application. Unlike traditional business loans, the application process for a merchant cash advance can be completed quickly.
You do not need to drive all over town trying to find a loan office to submit an office. You can simply go online and fill out the simple application, right from the comfort of your own home or office.
You only need the following items to get started:
Credit Card Processing Statements
Business Bank Statements
Years in Business
Business Tax Return
If you want to get access to your merchant cash advance as quickly as possible, it is advisable to have these documents ready prior to submitting an application.
If your business needs funding quickly, you can take advantage of the quick and easy application process. With a merchant cash advance, you could get upfront working capital in exchange for a percentage of future sales.
But before finalizing the transaction, it is imperative that you carefully go over the contract, including the cost of the money and the repayment term. Reading the terms and conditions of the agreement will enable you to make an informed decision about whether or not getting a merchant cash advance is right for your situation.