Merchant Cash Advance firms offer a unique path to financial salvation for businesses in need of working capital.
In today's economy financial lending institutions are tightening their restrictions and the amounts they lend. Due to new lending practices merchants are finding it harder and harder to acquire necessary funding to help their businesses thrive. A Merchant Cash Advance can provide greater access to these needed funds and in less time. The best part, it's not a loan.
A Strong and Growing Industry
For the past ten years Merchant Cash Advance firms have been offering business owners an alternative to business loans. In 2011 alone Merchant Cash Advance firms advanced over 750 million dollars. Merchant Cash Advance firms advance money to merchants in all areas of the economy, focusing on businesses with solid credit and debit card transaction volumes. A Merchant Cash Advance is a great way for merchants to obtain the working capital they need to effectively run their businesses. Instead of borrowing money from a lending institution, as in the case of a traditional business loan, a merchant sells a set portion of their future credit card receivables. Basically, the merchant receives money from the Merchant Cash Advance firm, in return the Merchant Cash Advance firm collects a small percentage of the merchant's credit card transactions until the advance is paid off.
The Pitfalls of a Loan
When a business owner seeks to qualify for a business loan, the owner may need to have a credit score of 700 or higher, read through and sign numerous legal documents, and meet several times in person with the loan officer. The owner will have to put up some form of collateral (and often lenders won't accept store merchandise as collateral), explain in detail how the credit will be used and how much of it will be spent on what, agree to limits placed on spending, detail the history and nature of the business, and wait for approval, and approval rates are at all time lows. If the loan is approved the owner may have to wait up to several months before the funds are available, make set payments each month, and have the loan paid in full by a certain date.
A Better Way to Go
A Merchant Cash Advance is a far better alternative for many business owners. Even if an owner is turned down for a loan, they may still qualify for an Merchant Cash Advance. Even having poor credit scores and damaged personal credit histories are not automatic disqualifiers for an Merchant Cash Advance. With an Merchant Cash Advance, business owners receive their money in full within days of submitting an application, there is no maturity date (the day the advance is paid back in full), owners don't have to pledge collateral, and there is not a set monthly amount to pay. Instead, the Merchant Cash Advance firm takes a small percentage of credit and debit card sales. It's all done automatically too. No more checks to mail each month, no keeping track when the bill is due, no more late fees.
Here's How it Works
Let's say you apply for a Merchant Cash Advance from Fastpoint. You submit the application materials and usually in a few days you receive your approval. You agree to the terms of the advance, including knowing exactly how much you will pay back. Fastpoint advances you the money you need and you can use it on your business how ever you need to: advertising and marketing, promotions, new ventures, business growth, unexpected expenses, just to have some working capital, etc. Fastpoint then gleans a small percentage of your daily credit and debit card sales when the transactions are settled. If you have a slower period, then you still only pay just that percentage of credit and debit card sales. If you have a more lucrative period, then you pay back your advance quicker. Once Fastpoint receives the total of the predetermined amount, that's it. You're done. Many merchants pay back their advance in 12 months or less. And you can apply for another advance if needed.
Contact Us Now
Merchant Cash Advances are great, simple, fast ways to receive cash advances to help merchants fund their businesses. Fastpoint can help you get started today. With our streamlined process and friendly customer support agents you can begin the quick and easy process so you can get the money you need now to grow your business.
Important: A Merchant Cash Advance is not a consumer loan product. Only merchants with a credit card processing account may apply for a Merchant Cash Advance through Fastpoint. For more detailed information on determining whether a Merchant Cash Advance is right for you, see our Responsible Funding Policy