Merchant Cash Advance is a financing system now available to small and medium companies. It answers these companies’ necessity for immediate capital infusion sans the typical hassle often encountered when applying for loans from traditional providers like banks. It’s expected for small companies in the course of their operations to require immediate cash infusion sometimes to finish a project or to settle accounts due. Often times, banks don’t serve the this specific group of entrepreneurs. Consequently, this leaves many small companies urgently seeking for a financing source. Now, with the introduction of merchant cash advances, small companies need not worry and they are confident in carrying on with their operations.
Merchant cash advance is a factoring system. It is not a loan. Unlike the usual loans that banks and other traditional providers offer, merchant cash advance is a simple, easy, and fast financing system. This cash advance doesn’t need an applicant to comply with a thousand requirements nor fill up numerous forms. It does not concern itself with fico scores as well as other equivalent litmus tests most financing firms concern themselves with. What merchant cash advance companies are more concerned with would be the average regular monthly credit card sales of the business which is used as one of the bases in drafting the terms of the cash advance. With merchant cash advance, there’s no fixed periodic loan amortization. The amount advanced gets settled via a small amount or percentage that’s withheld in every credit card transaction.
Amidst the current economic crunch, many businesses get very much attracted to this particular type of financing. Its terms and way of operation are deemed business friendly amidst these difficult times. Processing an application for an advance is quick. Say good bye to credit and back ground investigations. These hold no water in a merchant cash advance application. The requisites are few and easy to follow. And this particular kind of advance is available to all establishments accepting credit card as mode of payment. Another trait of merchant cash advances that many find attractive is the fact that no collateral or asset is asked as surety for the amount advanced.
Now, an urgent situation isn’t a reason for worries for a lot of promising small to medium sized companies. With merchant cash advance, that need can be available in only a matter of few days. As the need for financing of this sizeable market of small and medium sized enterprises remains unsatisfied, there’ll be merchant cash advance providers around to fill this need and give solution.