Orange County, CA: Inject Extra Cash into Your Business with Merchant Cash Advances
Worldwide Capital Management – Orange County CA: In the 21st century, there are a number of innovative and novel lending methods that have become sought after by small- and medium-sized businesses. One of these is the merchant cash advance, and businesses pay these back through a small percentage of credit-card transactions. Merchant cash advances are generally meant to be short-term loans with payments usually being taken directly from the credit card revenue the business brings in each day.
If a business requires access to cash quickly so as to meet a short-term need for capital, they can access funds via their credit card merchant account. The way it works is that the provider of a merchant cash advance will buy a dollar amount of your business’ future debit and credit card sales at a discount.
As with any loan, when looking for merchant cash advances, make sure you only deal with a lending institution with a good reputation to ensure your merchant cash advance is a safe option. We all know how long banks can take to process loan requests, and sometimes at the end of weeks or even month of deliberations, they turn your loan efforts down.
With Worldwide Capital Management, you can look at their Premier Advance which is for those well established business owners who have better than average credit. Their Advantage Advance suits those whose credit record isn’t so good and who are a newly established business.
Cash Based on Your Credit Card Sales
You can’t really call a merchant cash advance a loan – it is rather a cash advance based on the credit card sales of a business. This means that a business can apply for a merchant cash advance and have the advance deposited into their account in double quick time.
What makes this quick cash so appealing to small businesses is that the providers of these advances weigh up risk and credit quite differently to banks, giving businesses a far better chance to accessing much needed funds. The time it takes to get approved for a merchant cash advance is just a mere matter of hours to a few days. Of course paperwork and other factors influence time, but once the process is approved, a business will see the funds in their account within a couple of days.
The beauty of applying for merchant cash advances is that the application process is far less complicated than that of a traditional loan.
Restaurants Typically Benefit from MCA’s
Because restaurants make use of credit cards for most of their sales, they typically make use of merchant cash advances for their financing, with the MCA company taking their cut from each day’s sales until the amount has been paid back. The restaurant doesn’t pay the company back themselves, but rather they cash advance company gets the money from the processor dealing with the card payments for your business.
Unlike with a regular loan where you pay one big fixed monthly payment, your business gives a fixed percentage of revenue according to its day-to-day debit and credit card dealing. This is done automatically until the amount owing is all paid up to the MCA provider. Businesses find this pretty useful as its an alternative to the drawn-out and involved approval process and rigid credit requirements required by banks. The cash advance can be used for any business operations. Businesses who have already taken advantage of a merchant cash advance will tell you that their benefit lies in the fact that –
●you don’t have to have an exemplary credit record to qualify
●because the remittances are automatic, no writing of checks or going to the bank is required
●your business is more flexible as you don’t have to contend with fixed monthly payments during difficult times and there is no set maturity date
●a merchant cash advance is easier and quicker than trying to get a traditional loan
When you Need Cash … Fast!
Merchant cash advances are unsecured, and cash advances can be made available in less than 48 hours. Flexibility is a characteristic of merchant cash advances, and this is what makes this lending option so appealing to small- and medium-sized businesses. A merchant cash advance is an option when a business needs quick access to capital so that it can take advantage of those opportunities to purchase equipment and inventory at a discount. With credit requirements being less stringent, it can be an option for a business that does a lot of credit card transactions but who credit is less than perfect.
Payments According to Your Sales
Since payments to the lending company come from the business’s day-to-day sales, cash flow is easier to manage than having a fixed payment. You pay back accordingly – more when sales are high and less when sales are slow. With a merchant cash advance for a restaurant for instance, it will need to be making enough revenue with a generous profit margin so as to make their payments timeously.
The requirements for a merchant cash advance are far less stringent than with bank loans. Rigid credit checks may not be required because the finance company is primarily interested in your credit and debit card sales, because it knows after all that this is how it is going be be paid back. As with any loan, check out the terms before signing a contract. Merchant cash advances are a quick and easy form of business funding which is done by roping in future card sales, and Worldwide Capital can provide your business with $4,000 to $2,000,000 in just a few days with flexible payback options.