Different Merchants, Same Loan
There are so many different types of merchant businesses; from clothing stores, to hair salons, to gas stations, to auto repair shops, and the list goes on. Although the heads of these businesses may hold varied interests, as they are experts in completely different fields, they all have one significant thing in common. They are business owners who could most likely use a little extra money to put towards their businesses. This is where the merchant loan comes into the picture.
A merchant cash advance is a specific type of merchant loan that utilizes a process called credit card factoring. Some businesses are ineligible to receive merchant cash advances since they do not regularly process credit card sales. But for the lucky business owners who operate merchant businesses, selling retail, wholesale and/or services, a merchant cash advance can make a business better than ever, and become a merchant's best friend.
What is Credit Card Factoring?
Credit card factoring is selling your business' future credit card receivables. By doing this, you are able to get money upfront, to put into your business. This is ideal for merchants, especially those who are ineligible for other traditional types of business loans. Since merchant cash advance lenders are actually buying your future credit card sales, once your account has been funded, the lender will take a small percentage of your daily credit card sales until your merchant cash advance repayment is complete.
Merchant cash advances are particularly safe for merchants due to the way credit card factoring works. Before offering any particular amount of money to a merchant, lenders review the borrower's monthly credit card sales. They will then calculate a sum that (based on the business' monthly credit card sales) can be paid back in a reasonable amount of time.
Some merchants may be wary of dealing with merchant cash advance lenders, due to a fear of being swindled or deceived. But the fact of the matter is, merchant cash advance lenders are putting their money on the line, and they don't want to lose money any more than you do. Therefore, they will not lend an amount of money that they do not feel your business' credit card sales can support. The percentage taken from your daily credit card sales will also be small as lenders want to produce satisfied customers.
Another factor that makes merchant cash advances so compatible for the merchant business is the variableness of the repayments. Since repayment is taken as a percentage of sales, rather than a fixed number, your repayment amounts automatically change along with your credit card sales. If your repayment is set as 15% of your credit card sales, and you make $30,000 in credit card sales in July then $4,500 will go towards your loan repayment for that month. But if for some reason, your August credit card sales only reach $17,000, only $2,550 of that money will go towards your repayment. This is extremely beneficial for merchants as at times, sales can rise and fall without expectation or identifiable reason.
Regardless of the type of merchant business you operate, coming across business financial predicaments is only natural. Instead of letting these occurrences get the best of your business, consider a merchant cash advance, it could be the solution to your merchant problems.
Related Tags: small business loans, merchant cash advance, merchant loans
David Castro often writes articles about Merchant Loans and Small Business Loans for Merchant Resources International - To Learn more Visit Us at http://www.cashprior.com.
Your Article Search Directory : Find in ArticlesRecent articles in this category:
- Payday Installment Loans: Ideal Funds That Supports Your Impending Needs
Any impending monetary crisis will be tough to deal with, if you are not having adequate funds. Neve - Educational Loans -helps To Secure Bright Future
Education is said to be the most important thing in ones life. It not only helps to improve the stan - One Hour Payday Loans No Faxing - Fastest Option Of Acquiring Money
Nowadays, loans have become a common thing among the UK people as needs are rising while the salary - Tenant Loans - Instant Monetary Support For Non Homeowners
Are you looking for an unsecured financial help that does not demand security to place against the r - Payday Loans No Faxing - No Verification And Delay
So many times, the approval of the loan gets delayed due to the lengthy paperwork and documentation. - Bad Credit Car Loans -helps You Finance A Car
Are you in need of a new car? Here bad credit car loans can offer you finance as you need. Perhaps y - Logbook Loans - Friendly Deal For Car Owners
Everyone knows that logbook is a paper issued by driver and vehicle licensing agency. This important - Same Day Loans For People On Benefits - Quick Money For Instant Financial Hold
Urgent and unpredictable demands might arise at times when you are not financially prepared. To deal - 3 Month Payday Loans - Feel Free With Longer Repayment Option
Are you looking for the loan that can give you small cash, but for longer duration? Are you worried - Loans For Bankrupt People - Look Forward For Financial Stability
Financial acronym or injury and inability for reimbursement to the concerned are known as insolvency
Most viewed articles in this category:
- Unsecured Personal Loans - Loan for the Common Man
Loans can broadly be divided into two types - unsecured loans and secured loans. Secured personal lo - High Risk Unsecured Personal Loans at Nominal Interest Rate
Today, unsecured loans gave grabbed the market as more and more people are opting for it. The loan m - Personal Loans-Don't Suppress Your Financial Needs
Personal loans can be segregated into a secured and an unsecured loan option. If you are a homeowner - Take the Loan; Show No Reason
If you are in need of a loan and want to utilise it for any purpose without showing the reason to th - No Compromise With Your Pleasure, Have Your Own Car
On a fine morning, you get up to see the sun shining brightly in the sky, leaving the world bathed i - Subsidized And Unsubsidized Student Loans!
These loans carry different loan terms and different requirements. According to the student situatio - Interest Rate: The Key Factor on Car Loans!
There are such wide variations in APR between lenders that you can end up overpaying on your car loa - Fight Against Tight Financial Situation With Personal Loans UK
It is always better to prepare yourself for unforeseen or unexpected expenses. If you are not born w - Advantages And Disadvantages Of Lack Of Security On Loans!
The unsecured nature of these loans attracts tenants but homeowners as well. However, in order to de - Unsecured Personal Loans-A Loan Everybody Is Eligible To Procure
Unsecured personal loans cater to urgent day-to-day financial requirements, and have become very pop