You must be approved first: One of the many reasons business cash advance is favored by so many business owners is because of the fast and easy approval process, but you should be careful though. Do not accept the advance terms or amount just because you got approved on the first try. There are providers who are unscrupulous in order to collect default fees and penalties, approving businesses that they know won’t be able to pay off the advance borrowed.
3. How service agreements work: The providers explain all the details once you have been approved. You would repay your advanced amount in daily automatic transfers from your merchant account at a set percentage of your daily sales as deemed “safe” to retrieve, including service fees until the advance amount is paid off. Watch out for:
• Repayments requiring a full balance payoff after a certain period of time
• Fees that sets in when sales volume drops
• Repayment periods that are extended or balloon
Merchant cash advance is not a loan with lending or usury laws, so providers can charge an arm and a leg to businesses with no alternative means of financing.
4. View vendors’ rating at Better Business Bureau to see if any complaints have been filed with the Federal Trade Commission. Get references whenever possible. You can also secure great rates by pledging equipment or bank account access as collateral, but you must be very careful with companies that require you to do this option.
• Repayment schedule: Repayment schedule is flexible just like rates, though be wary of daily/monthly minimum fees to your transactions that can add up.
Terms that are not negotiable with providers
• Application fee: Reputable providers won’t ask for it. There is no application fee.
• Existing terms: Unless you are prepared to seriously compromise, once you have signed the contract, you would not be able to negotiate out of terms, schedules, and fees especially. Be prepared to pay if you want to extend the repayment time.
• Merchant requirements: Merchants that accept credit cards are only eligible for merchant cash advance. Companies won’t accept you otherwise because they want a guaranteed automated method of repayment.
We all know how difficult it is to get approvals for a fast business loan to tide over the immediate and long term capital issues that businesses routinely face. Now you don’t have to face the excruciating uncertainly of whether your loan application would be approved or rejected. Merchant cash advance is here. It works better than fast business loans. You can get approved for as much as $250,000 in cash within no time.
Unlike a fast business loan, the advance uses different parameters to judge your eligibility. The funding process is delightfully simple and is not influenced by your credit history, however bad it might be in the present situation. If your business accepts a minimum of $5,000 in credit card sales and you don’t have any open bankruptcies, you are on your way to get a quick and easy qualification. Additionally, there is no cost and no obligation.
You can apply for it if you are in a retail industry, medical service, hospitality sector or restaurant. merchant cash advance