If you are a small business with a less than worthy credit score for bank lending, but make at least $3,000 in credit card income? If so, you don’t have to be limited by a low credit score as there are merchant cash advances out there that can give you the funding you need for business growth, venture capital, or working capital. These merchant cash advances have worked very well for small businesses in the past ten or so years as it plays more on using future sales as collateral in order for these businesses to get the funding they need.
What is the Difference from Business Loans?
Although businesses have for many years had the option of business loans to obtain funding, merchant cash advances offer a better option for businesses with a credit score below 740. These days, most banks just aren’t going to trust a business with a lower credit score to lend them money. Cash advances are also less regulated than these bank loans. This makes it easier for these merchant cash advance providers to provide funding by purchasing future sales of the business. For this reason, these providers are looking more at the monthly income brought in from credit cards, mostly the major credit cards like Visa and MasterCard.
There is also a lot less needed in order to secure the advance compared to a business loan. Many times, a small business loan requires several documents including:
Business plan
2-3 years of personal and business tax returns
2-3 years of personal and business financial statements
There are also many other things that may be needed including:
Application Fee
Personal Guarantee
Closing Costs and Hidden Fees
Collateral on all Business and/or Personal Assets
So the difference here is that merchant cash advances don’t require any of these things at all. There is no business plan needed, and most businesses that have been in operation at least 2 years are approved. There are no tax returns or financial statements needed, just proof of monthly income from credit card sales to ensure there is something to purchase. Although there is no personal guarantee required, there is a guarantee against fraud or intervention needed, to ensure that there will be no issues when the provider attempts to collect their payment through the credit card receipts. While bank loans could take up to months for the approval process, merchant cash advances are approved within 48 to seven days in most cases, offering the ultimate option for small businesses in need of immediate capital. For more information visit: http://www.merchantcash.com/
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