The business industry over the past few years has become a tight credit industry with many businesses making up for the losses of their consumers. Let’s face it, as the consumers begin to feel economic constraint, business too begin to feel this stress. As less customers and clients are able to make their monthly payments, these businesses are at a great loss. Just consider 10 clients defaulting on their monthly payment; the company could be at a loss of thousands in operating revenue and working capital. At the same time, the business’s credit score is decreasing making it harder and harder to obtain funding. With banks typically only lending to businesses that hold a credit score that is no less than 740, this creates a challenge for small businesses.
The Small Business Solution
So for these small businesses, there is a cash advance that is about ten years old and has begun creating a strong financial restructuring foundation for many small businesses: a merchant cash advance. The key to makes the merchant cash advance the ultimate solution for these businesses is that it offers the funding that would otherwise be unavailable due to credit limitations. Offering a funding solution for small businesses with a credit score as low as 520, merchant cash advances are providing opportunities that are otherwise not available. The funding could be anywhere from $10,000 to some lenders offering as much as $500,000 in a matter of 7 business days, very quick and very beneficial to these small businesses.
Qualifications for a Merchant Cash Advances
Merchant cash advance providers are able to offer these cash advances many times with no collateral required to secure funding and repayment is made through a small percentage of future credit care payment receipts. So, small businesses get a lump sum for venture or working capital and in return repay the merchant cash advance provider with a share of the future sales made by the business. This is mainly why the cash advance approval is based in part on monthly and annual credit card transactions within the business.
A merchant cash advance could be the answer for small business in an industry that isn’t dominated by high credit scores anymore. There are more businesses that are able to earn the revenue, but due to economic stress have seen a sliding credit score. These cash advances work with the future sales of these businesses to secure funding they need quickly.
