You might be running a retail company for which you need to borrow money quickly. If this is the case, there’s a unique type of business cash advance available to you called a merchant advance, or merchant loan. These work different than traditional loans in many ways. We’ll be discussing some of those differences, in today’s article.
In general, a business cash advance is money that one company lends to another for a short period of time. It’s offered at what is generally accepted as a high rate of interest. The goal is that you pay back the loan quickly to avoid paying too much interest. The requirements are usually very low and processing is very fast. A merchant advance doesn’t have any type of credit requirements per se, since they are structured very differently.
Unlike a traditional advance, a merchant loan is not really a loan. The lending company will look over your credit card processing statements over the last 6 months to determine how much they want to buy from you in future sales.
For example, let’s say you make $10,000 a week in credit card sales. The merchant lender might decide to buy one week’s worth of sales to be paid back over 6 months. Since it’s not a loan, there is no interest. Instead, they pay a discounted rate for your future sales. Perhaps, they will pay you $9,000 for $10,000 worth of sales in the future. They will be repaid by getting a small piece of each credit card sale until they are fully repaid. Typically, these are structured to take up to 6 months to repay.
For more information, go to Business Cash Advance at http://www.unsecuredbizloan.com/business-cash-advance/