Finding working capital is perhaps the toughest challenge for aspiring entrepreneurs in this troubled economy. Small business loan products and schemes have suddenly disappeared from the market scenario and there are obvious reasons behind that. If you are about to start your own business but have not yet found a feasible funking solution, business cash advance schemes are to meet your precise needs. These programs bring myriad benefits to the entrepreneurs and you can also use the funding option to your advantage. Is this business funding option right for you? How to apply and what are the typical repayment terms? Read on to find more.
How to apply for small business cash advance programs?
Merchant cash advance programs are quite easy to apply and qualify for. These programs are based on revenue that generates from processing of credit card. If you accept credit card payment from your customers, getting approval for a small business cash advance becomes easy. Please note that most internet-based businesses do not qualify for this type of loan as the lender will examine your credit card sales volume to decide your eligibility. If you have no open bankruptcies, you can follow the procedure as mentioned here below to apply for a business loan of this type.
Many lenders have now rationalized the application procedure by offering online forms to applicants/entrepreneurs. You just have to provide some administrative data such as your business’s monthly gross sales, monthly credit card sales along with your contact details and name to start with. The copies of the credit card statements should be produced during the verification phase and the lender will pore over your credit card sales frequency and volume, both. Along with the copies of credit card documents, you may have to submit your bank statement (s) for the past six months, copies of personal identification cards, and proof of ownership.
Merchant cash advance programs are costlier than the traditional corporate loans. Business loans accumulate interest over the repayment period. The longer the repayment period, the higher amount you pay in form of interests. On the other hand, business cash advance programs come with fixed purchase piece. The lender will calculate your future credit card receivables and quote you a purchase price on the basis of that.
Since the advance business funding programs are based on credit card transactions, the loan amount is fractionally paid back with every transaction at your business’s point-of-sale. The provider gets a small percentage of each credit card transaction and you have nothing to pay extra. This is advantageous for your small business in a variety of ways. Even if your counter sales drop drastically in one month, you will not to worry about missing an equated monthly instalment. However, it is highly advisable for you to read the repayment terms in detail and understand the consequences of defaulting. Read the small prints of a cash advance agreement before you opt for this type of funding. Comparing different merchant cash advance options is also important.
Are you looking for a business loan? Elite Funding is America’s most trusted funding source, arraying a horde of business funding options for aspiring entrepreneurs. Visit site to apply or know more about our loan products.