Are you missing out on business opportunities due to shortage of funding? Is the long wait for loan approval hurting your business? Are you being asked to produce hordes of unnecessary financial documents? Are you frustrated by all the inconvenient questions surrounding your business loan proposal? Are you looking for a quick and painless way to procure resources for your business and get ahead of the competition? If yes, then a business cash advance, also called a merchant cash advance is the perfect solution to your problems.
Business cash advance is a funding option that is changing the world of business. While a traditional loan application can take weeks or months to process, business cash advance providers release funds within a week, sometimes in less than three days. The application form is available on the company’s website. The form is quite simple and takes little time to complete. Further, you only need to submit a minimum set of documents to get your application accepted.
The cycle of business cash advance application is described below:
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 process credit cards payments for at least six months before submitting your application.
2. Submitting an application for an advance
Business cash advance providers ask for your credit card processing statements with the application. Your application is qualified based on two criteria – number of months 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 be accepted for a business cash advance.
3. Signing the contract for business cash advance
If you are approved for the business cash advance, a contract will be drawn out. This will specify four critical pieces of data.
* Amount of credit card receipts purchased: This is the amount 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 specifies the actual amount of money the provider will advance to you.
* Percentage of daily credit card sales: This specifies the percentage of credit card receipts that will be paid out to the provider each day. This percentage should be fixed at the start and not change through the payment period. Scrutinize the fine print thoroughly for imprecise clauses that can be used by unprincipled providers to change this percentage at a later stage.
* Penalty terms: The terms are specified to apprise you of probable actions in case of contingencies.
Scrutinize the contract very carefully. Clarify all concerns and understand every term and condition specified in the contract. Remember that business cash advance is not a loan. Your contract is the only legal protection against deceitful providers. Once you sign on the dotted line, the advance will be released to your account within a week or less.
Business cash advance allows you to receive funds quickly and easily without drawn out waiting periods. Make the most out of your business cash advance funding by familiarizing yourself with the approval cycle.