Business Financing – Three Easy Steps To Get A Business Cash Advance Approved
Are you missing out on business growth due to low funding? Are you tired of waiting for days on end to get your business loan sanctioned? Is your banker asking for an array of unnecessary financial documents? Do the countless inconvenient questions get on your nerves? Are you looking for a speedy and painless way to secure resources for your business and gain an advantage over the competition? If yes, then a business cash advance, also called a merchant cash advance is the ideal solution to your problems.
Business cash advance is a financing alternative that is changing the world of business. While a conventional loan application is approved in weeks or months, business cash advance is obtained within a week, sometimes in less than three days. The application is available on the internet. The form is quite simple and doesn’t take much time to complete. Further, you only need to submit a minimum set of documents for approval.
The cycle of business cash advance application is described below:
1. Setting up an account with an approved credit card processor
Business cash advance is not a loan, rather an advance purchase of your business’ future credit card sales. Thus, to receive a business cash advance financing, you should have an account with a major credit card processors. Open an account with the approved credit card processor and start processing credit card payments at least six months before applying for a business advance.
2. Submitting an application for an advance
Business cash advance providers need you to submit only your credit card processing statements with the application. Your application is qualified based on two criteria – longevity of business and average monthly credit card sales volume. Typically, you should have been in business for a minimum of 6 to 9 months with average monthly credit card sales of $5000 or more to qualify for a business cash advance.
3. Finalizing the business cash advance
If you are approved for the business cash advance, the provider will send you a contract. This will lay out four critical pieces of information.
- Future credit card receipts amount: This specifies the volume of the credit card receipts that you sell to the provider in exchange for the cash advance. It also gives you the actual cost of the advance.
- Cash advance amount: This specifies the total loan amount you will receive from the provider.
- Percentage of daily credit card sales: This gives the percent of credit card sales that will be paid out to the provider each day. This percentage should be fixed at the start and not change through the payment period. Watch out for vague clauses that can be used by unprincipled providers to hike up this percentage at a later stage.
- Penalty terms: The terms are specified to make you aware of possible actions in case of contingencies.
Upon receiving the contract, read it thoroughly. Clarify all concerns and understand every term and condition specified in the agreement. Remember that business cash advance is not a loan. Your contract is the only legal protection against unscrupulous providers. Once you sign on the dotted line, the advance will be transferred to your account within a week or less. Business cash advance is a quick and painless funding option. Simplify business cash advance funding by learning about the prerequisites for approval.
Daljeet Sidhu. Read Business Financing, Merchant Advance blog.
Popularity: 2% [?]
