Benefits of Merchant cash advances

If you run a business and have difficulty qualifying and receiving a loan from the bank, cash advances from buyers can be one of the most profitable alternatives. Cash advances can be particularly convenient when you are experiencing a financial crisis, but you can be sure that the company has enough cash flow to pay off the debt. Prepaid requirements are not as strict as applying for a loan. It is enough to be over 18 years old, have a reliable source of income from the sale of credit cards and have a bank account. Processing, approval, and shipping are also fast, which makes it ideal for those times when you need money in a short time. There are several advantages to obtaining merchant cash advances from companies such as Restaurant Business Finance.

* Rapid turnaround time: even if the amount paid by the company to the cash advance of the buyers is greater than the principal and interest that would be paid for a regular bank loan, the short time that the loan is approved makes it particularly useful when Cash is urgently needed. Many companies believe that the high cost of down payment is a less important issue than the urgent access to cash for the company.

* Merchants place little importance on your credit history: in the case of traditional loans, you must show a clean credit history. If you have a low credit score, the chances of approving the loan are small, which hinders the loan. With cash advances, you only need to show that your company has been receiving credit cards in the last 60 days. The evidence of cash flow is much more important than the credit history when it comes to cash advances.

* Little or no security required: advances to merchants only require credit card accounts receivable as collateral. Compare this with the rigorous requirements of applying for a traditional commercial loan: you will not only have to present evidence of your ability to pay, but also security, such as equipment and commercial assets.

Less risk to your assets: if you can not pay the advance, the buyer must cover the loss. This is not a typical loan in which the lender can own all the items he has provided as collateral and go to court to force him to repay the outstanding amount.

* No fax: there are many companies that can provide buyers with merchant capital without the need to send documents confirming their identity by fax. The company will simply use the information provided in the application form to verify your information and pay in advance if you qualify.

* Online service: you no longer need to visit the headquarters of the factoring company to request a payment in advance and receive it. Thanks to many factoring companies that currently provide online services, you can perform the process from scratch to the end in the comfort of your home