If you are a merchant who has been searching for ways to finance your business, you have most likely come across the multitude of business loans, and other financing options that are available for business owners.

Startup loans are intended to fund the development of a business from the ground up and business acquisition loans provide funds for the purchase of an already existing business, especially helpful for those who find that the amount of money they can acquire through a startup loan does not cover the actual startup costs.

Other financing options include business lines of credit, which are like credit cards for businesses, offering a specific credit limit up to which a business may access, equipment financing, which is a loan that is given to finance the purchase of equipment, using the equipment as collateral for the loan, and professional loans, which are designed for business professionals such as doctors, dentists, and lawyers.

But a merchant’s needs are different. Merchants need to satisfy customers in order to promote sales, and none of these loans are ideal for the countless merchants who are in need of business financing. And whether products or services are sold, having continuous access to working capital is important.

Fortunately, there is a type of loan specifically designed for owners of retail and consumer-driven businesses. A merchant cash advance is a type of merchant loan that is based on the monthly credit card sales that a merchant processes.

Recipients of merchant cash advances have used their funds to purchase inventory and/or equipment, to increase advertising for their businesses, and even to expand their businesses. Still, the types of existing merchant businesses are endless, and every merchant has financial needs unique to his/her business. For this reason, most lenders impose no restrictions on what a merchant cash advance can be used for.

Another factor that makes merchant cash advances the desired merchant loan is the unique payback procedure, intended to meet the needs of merchants. Instead of requiring a fixed monthly payment, businesses’ credit card sales are used to handle the repayment. When customers make purchases using credit cards, a percentage of those sales goes towards the repayment of the merchant cash advance. This is done until the merchant cash advance has been completely repaid.

The majority of a merchant’s time must be spent tending to customers’ needs and promoting customer satisfaction. This can make it difficult to remember to make monthly payments, ultimately leading to fines and penalties that could have been avoided. The merchant cash advance repayment system eliminates the possibility of these unnecessary charges, taking the responsibility of remembering to make a payment completely off the merchant’s shoulders.

Also beneficial to merchants, many merchant lenders that offer merchant cash advances also provide merchants with the opportunity to renew merchant cash advances. Usually, this process is even easier than the initial process requiring only a signature before the merchant’s account is funded.

Question about merchant loans

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In 2007, there were over 27 million small businesses in the United States and many of those small businesses were in the retail, service and/or food-service industries. Taking into consideration that some of these retail businesses may be products of a single owner, there is still sound reason to believe that there is a considerable amount of retail owners in the United States. But even with hundreds of thousands of colleagues, being in a financial rut, not knowing if one’s business will make it through the off-season, or wanting to expand but lacking the funds to do so, can make a retail owner feel pretty lonely.

For the multitude of retail businesses in the U.S. and their owners, the merchant loan is like a rescue helicopter landing on a deserted island. It can take your financial worries, fears and shortcomings and turn them into the relief in knowing that business financing is possible.

But what type of merchant loan is best for your specific type of business? That is a question that only research and sometimes trial and error can answer. Some of the different merchant loans that are available are bank loans, equipment leasing and venture capital.

There are obviously various types of merchant loans but there is only one type of merchant loan that takes your business’s future credit card sales and turns them into cold hard cash today! With the merchant cash advance, small business owners in the retail and/or service-oriented industries can receive funding for their businesses from $5,000 to $500,000.

These funds can be used for anything the business owner feels will help his/her business. Why is this merchant cash advance more convenient than the other types of merchant loans?

1. Looser Requirements

Eligibility for a merchant cash advance depends mainly on the amount in credit card sales that a merchant processes. As the amount in monthly processed credit card sales increase, so does a merchant’s possible funding amount.

The merchant cash advance is completely unsecured. Therefore, even if a merchant has no collateral, he/she may still be eligible to receive a merchant cash advance.
Looser requirements also mean more merchants can be eligible to receive a merchant cash advance.

2. Renewals

The merchant cash advance can be renewed approximately every three to four months. Merchants are allowed to renew their advances as many times as they please. This comes in handy for many merchants because it allows them to have business funds available to them at all times.

3. Fast Funding

Most methods of business financing take a considerable amount of time to actually come through for a merchant. The application, review and funding processes of other types of business funding methods can last longer than a merchant would wish. But with the merchant cash advance, small business owners can be approved in 48 hours and funding can occur as little as ten business days.

4. No Restrictions

Merchants who chose to use a merchant cash advance as their source of business financing are allowed to use their funds however they please. This means, merchants can have funds to increase working capital, update equipment, increase advertising, renovate, etc.

Merchant cash advance lenders will not ask a borrower to write out a business plan or develop a presentations outlining how the money will be used. The decision of how to use the funds is left completely up to the business owner.

5. Automatic Repayments

Merchant cash advance repayment procedures differ greatly from other types of merchant loans. The merchant cash advance lender will automatically deduct a small percentage from a business’s daily credit card sales until total payback is completed. This payment method allows payback to go with the flow of business, which is very convenient for those working in the retail/service-oriented industries.
With the availability of the merchant cash advance, merchants can get a loan so they no longer have to feel alone when it comes to business financing.

Question about merchant loans

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