Merchant Cash Advance for Online Business
In today’s technologically advanced world, everything is online. Be it retail sales or regular household items one may require frequently, people prefer to buy them online. This is because, it is easy, convenient and saves a lot of time and fuel, which is otherwise required when you visit a store in person.
When you have an online business, the cash requirements can vary as per the growth curve of your business. If your business is taking off, the requirements could be high. What do you do in such cases? Apply for a loan.
Why Say No To A Loan
A bank loan requires sufficient collateral and a good credit score which will guarantee the banks that you are capable of repaying the amount borrowed. Hence if you have ever made a default in payments or any other instances that can affect your credit score, the loan sanctioning should be forgotten.
When you apply for a proper bank loan, not only will you have to have a good credit rating but you must provide collateral too. This not only puts you at a high risk in case of default in payment but can cause you to lose your house too. However, when there is a cash crunch, one has to go for such funding, or let the business come to a standstill.
However, not many banks will process the loan applications for online businesses. This is because the risk factor is high and without a physical store, the bank has nothing to hold as collateral. And if the amount required is big, there is very little chance of a bank or any other financial institution entertaining such demands.
Alternate Funding Solutions
In such cases, one has to go in for alternate options that will give them the much required money without any major setbacks to their business. This is where the merchant account cash advance makes a difference.
These funding options allow you to borrow money for your immediate needs, so that your business can run smoothly. Be it a last minute cancellation of a big order or a new requirement, you need money and banks will not support such needs. When you opt for a commercial loan or a business cash advance, you will receive the required money against the future receivables via card payments.
When you are an online company, the payments made towards your business will be in electronic format most of the times. With today’s increased usage of cards, it is this kind of payment that will be more. The merchant cash advance provider will provide the required money against such cash deliverables in the future. A percentage of the amount received via card payments is shifted to the service provider’s account, as a means of collecting back the money lent.
Whether you sell products or offer services, a business has to grow. For proper growth, sufficient funds are required. Though one may have enough cash in the bank, it is not the right decision to invest it all. One needs to have some liquidity for emergencies. This is when one needs external funding.
With merchant cash advances, you can buy new equipments, get the old ones repaired or expand your service line. This will help in generating more income and thus a faster growth. As the income increases, the card payments will also increase and thus the repayment to the merchants can be made without any delay.
An infusion of funds at the right time, can go a long way in any business. One needs to identify such a time and ensure they don’t miss it due to lack of sufficient funds.
One may not need full funding as they may have enough reserves and cash inflow. In such cases, the merchant cash advances can even be used to bridge the gap between the requirement and current availability. A merchant can fund for 1st Position, 2nd Position, 3rd Position, 4th and 5th Position.
When such flexibility is available, it allows the business man to decide how much money has to be borrowed. As there is no fixed amount to be borrowed, the variability helps in reducing unnecessary interest payments. The interest rates charged will vary with the amount borrowed and the risks involved.
How Can We Help
If you have been repeatedly turned down because of the nature of your business or due to a bad credit in the past, we are here to help. We trust in your business decisions and believe there is potential for your business to grow. This is why we sign up for a payment that is yet to be received by you. A percentage of your card receivables will be out repayment in the future.
Once we receive your application, our executives will conduct a thorough research into your company, background, business, the industry, etc. this will enable us to understand the risk involved for us and the potential available for your growth. It is based on this that the rates will be calculated. The amount borrowed will also be factored in.
Once we sign up, we will transfer a part of your card receivables to our account directly on a monthly basis, until the entire amount with interest is repaid.
Never hold back your business decisions and ideas. Get merchant cash advance from us and continue on your growth path. For we believe in you and aim to make life better for people who benefit from your business as well.