Are you missing out on business growth due to shortage of funding? Are you tired of waiting for weeks or months to get your business loan sanctioned? Are you being asked to furnish hordes of redundant financial documentation? Are you tired of all the intrusive questions surrounding your business loan proposal? Are you looking for a fast and trouble-free way to secure funding for your business and gain an advantage over the competition? If yes, then a business cash advance, also called a merchant cash advance is the ideal solution to your problems.

Business cash advance is a funding alternative that is revolutionizing the the face of the financial industry. While a conventional loan application is approved in weeks or months, business cash advance providers release funds within a week, sometimes in as few as three days. The application is available on the internet. The form is quite simple and takes little time to complete. Further, you provide a multitude of financial documentation to get your application accepted.

The business cash advance application process works in the following manner:

1. Establishing an account with an approved credit card processor

Business cash advance is not a loan, rather an advance purchase of your business’ future credit card receipts. Thus, to receive a business cash advance funding, you set up an account with a major credit card processors. Open an account with the permitted credit card processing service and start accepting credit card payments at least six months before submitting your application.

2. Applying for an advance

Business cash advance providers ask for your credit card processing statements with the application. Your application is vetted based on two criteria – time in business and average monthly credit card sales volume. Typically, you should be in business for a minimum of 6 to 9 months with average monthly credit card receipts amounting to $5000 or more to qualify for a business cash advance.

3. Signing the contract for business cash advance

If you are approved for the business cash advance, you will receive a contract from your provider. This will lay out four vital pieces of data.

  • Future credit card receipts amount: This is the total of the credit card receipts that you sell to the provider for receiving the cash advance. It also gives you the actual cost of the advance.
  • Cash advance amount: This is the actual funding you will receive from the provider.
  • Percentage of daily credit card sales: This gives the percentage of credit card receipts you will repay to the provider each day. This percentage should not change till the advance is paid off. Watch out for hidden clauses that can be used by unscrupulous providers to manipulate this percentage at a later stage.
  • Penalty terms: The terms are specified to apprise you of possible actions in case of contingencies.

Scrutinize the contract very carefully. Clarify all doubts and understand every term and condition included in the agreement. Remember that business cash advance is not a loan. Your contract is the only legal safeguard against deceitful providers. Once you sign and accept the agreement, the advance will be released within seven days or less.

Business cash advance is a quick and painless funding option. Simplify merchant advance funding by learning about the prerequisites for approval. Daljeet Sidhu is the author of this article.

Tagged with: • • • • • •

Filed under: Personal Finance

Like this post? Subscribe to my RSS feed and get loads more!