Merchant Cash Advance VS Big Banks, Who is Funding Who?
A merchant cash advance is formed when a merchant is advanced a large sum of their credit card sales. For example if a merchant processes twenty thousand in credit card sales monthly they can receive twenty five thousand in one lump sum and have anywhere from three to 24 months to pay it back depending on the merchants FICO score. The way the merchant repays the merchant cash advance is buy allowing the business cash advance provider to hold a small percentage daily from the credit card sales. This allows the business cash advance provider to feel more secure in obtaining its payments. Instead of a loan where you make payments daily and the risk to the lender is much greater. So that allows merchant cash advance providers to not be so hard when it comes to underwriting. They can fund business that have only been open six months not to mention they will fund accounts that have tax liens or even fico scores below 500. Most big banks want at least two years of tax returns not to mention a business plan. Business cash advances are easy and convenient for merchants to obtain the financing they need to help their business grow. No matter what type of business or the situation the merchants in business cash advance lenders can and will fund you.
Now this is why Big Banks are Turning you Down
It is simple, when you drive down main street in your local community how manygoing out of business signs do you see? or say wow another restaurant at that location? is because more than 60% of business fail in their first year.
Do you really think big banks are willing to lose money giving a merchant or small business owner money at 4-8%. There a re a few ways to go about it. If you want to start a business you better be self-financed or have a rich uncle that believes in you.
Why are Merchant Cash Advance Companies willing to give you the Capital you need?
Its simple profit. Banks charge 4-6% on their loans and have terms up to five years. Whereas business cash advance companies charge a bit more for accepting more risk. and get paid back within 6-15 months.
Where there is risk there is reward. So long story short if you own a business and get a business cash advance because you have been bank declined, perhaps a business cash advance may be best for you in the long run.
For more information on Cash Advances contact
Rob Olson,
Quantum Merchant Services
Merchant Cash Advance America
7300 Hudson Blvd, Oakdale, MN 55128
1-888-881-0657 ext 707
In most cases funding is within 72 hrs. $5,000-$250,00 available
Most of the time if any merchant want to start a new small business and they need a capital to start a business than some banks offer for loan for small business. Which is good for those people who are interested to start a small business.
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