When you start shopping for a home loan, it might be easy to assume that all lenders are the same. After all, they all have mortgage brokers, paperwork, and impressive offices. However, when you really start exploring the details, you might discover that lenders all have something different to offer. On my blog, you will learn more about financial terminology, so that you can determine what you are getting into when you sign the terms of an agreement. This information is presented in an easy to understand, friendly way, so that you aren't bombarded by terminology and industry jargon that you don't understand.
If you need more cash at hand, you may want to consider turning to your merchant services account rather than to your bank. Many credit card processing companies offer something known as a "merchant cash advance." These merchant cash advances can have some benefits over traditional loans.
What Is a Merchant Cash Advance?
In a merchant cash advance, your credit card processor essentially gives you a portion of your future sales right away. However, you'll need to pay back these future sales moving forward, just like a loan. Like a loan, there will be an interest rate and loan origination fees attached.
Why Would You Prefer a Cash Advance Over a Loan?
Though a merchant cash advance is very similar to a loan, there are some distinguishing factors:
Of course, there can be some downsides: foremost, the interest rates are usually higher than those of the average loan.
Who Can Qualify for a Merchant Cash Advance?
In order to qualify, you generally need to have a fairly long-standing relationship with your merchant credit card service. This is usually a matter of months, however, rather than years. If your merchant can see that you've been regularly bringing in money through their service, they will usually be willing to provide you an advance of some percentage of your sales.
A merchant cash advance can be used to give your company some liquidity when experiencing otherwise difficult times. You can contact a company like Merchant Cooperative to find out whether they offer this type of financing.Share