Wednesday, September 28, 2011

Merchant Cash Advance | Opportunity For Small Businesses

Great opportunity for small businesses

Small business sometimes struggle to survive due to cash flow problems. They have a great business which is successful, but they are limited as to what they can do with no extra money to expand or order needed inventory. Most banks are not willing to loan them unsecured money and so often they are not able to operate.

There is help for the small businesses who are willing to ask for it though. A merchant cash advance could be the perfect answer for the struggling business. Often they are able to provide the needed cash quickly and the business is able to continue and flourish. It is a great opportunity and most businessmen are not aware of what a perfect opportunity this is to grow the business.

A merchant cash advance works on a very simple principle. The business is given a large amount of money in exchange for the promise of a percentage of future credit card sells. The small business will allow the merchant cash advance company to take a daily percentage of the credit card sales directly from the credit card company. This is really not a loan, it is a agreement for a portion of future credit card sales. Because this is not a loan the merchant cash advance companies claim they do not have to follow the normal guidelines about interest rates for loans. This agreement is usually set up to last at least a year or terminate before if the obligation is met.

This is a great way to find the extra money to run a small business. If things are slow and there are not many credit sales, it is easier to handle the cash flow because they do not have a large loan payment due. It gives them a lot of flexibility.

A merchant cash advance can be completed very quickly and that is important for a business that is struggling. Everyday they continue without the needed cash, they are in danger of shutting their doors. There is no reason for that to happen when most of the time there is a simple fix. It is important that the company remembers this is like an unsecured loan though and they do need to repay it. They should not forget it is a real obligation and has consequences if they are not able to run enough credit card sales to repay the money they were given.

Restaurants, small retail stores and or service companies that do a lot of credit sales will be the best candidates for a cash advance. Often they have no or poor credit and a bank loan would be impossible. This is the best way of continuing in business and often it will pull them through a difficult time only to see them come out flourishing. Most small companies would probably prefer a low interest loan, but they realize they are not in a position to do that, so they are willing to take a chance with this offer.

The merchant cash advance companies that are presently operating would like to reach out to a greater portion of trouble businesses. They are only working with about ten percent now and have money and opportunities for many more. It is really only a matter of getting the word out and helping people understand this simple principle. They have money and are willing to pass it on to businesses who can prove they have credit card receipts that will be large enough to repay the advance in a timely manner. There is not a big credit check or long list of questions to find out if the business can qualify for this opportunity. It is almost like a gift for the company who is in a little trouble and really only needs a hand up.

A small restaurant that makes great food and has a good following often has a hard time ordering enough food to keep the place running like it needs to. With better cash flow, they can buy the needed ingredients, advertise and keep the customers coming in and using those handy little credit cards. The merchant cash advance company wins and so does the restaurant.

This is the wave of the future and a way of getting around unsecured loans for small and medium businesses. More and more of them will hopefully take advantage of this opportunity in the future and the economy, the public and the businesses will benefit. When small business flourish, the economy will pick up and after all, isn’t that what we need to make everyone win.

No comments:

Post a Comment