A Merchant Loan for the Lone Merchant

In 2007, there were over 27 million small businesses in the United States and many of those small businesses were in the retail, service and/or food-service industries. Taking into consideration that some of these retail businesses may be products of a single owner, there is still sound reason to believe that there is a considerable amount of retail owners in the United States. But even with hundreds of thousands of colleagues, being in a financial rut, not knowing if one’s business will make it through the off-season, or wanting to expand but lacking the funds to do so, can make a retail owner feel pretty lonely.

For the multitude of retail businesses in the U.S. and their owners, the merchant loan is like a rescue helicopter landing on a deserted island. It can take your financial worries, fears and shortcomings and turn them into the relief in knowing that business financing is possible.

But what type of merchant loan is best for your specific type of business? That is a question that only research and sometimes trial and error can answer. Some of the different merchant loans that are available are bank loans, equipment leasing and venture capital.

There are obviously various types of merchant loans but there is only one type of merchant loan that takes your business’s future credit card sales and turns them into cold hard cash today! With the merchant cash advance, small business owners in the retail and/or service-oriented industries can receive funding for their businesses from $5,000 to $500,000.

These funds can be used for anything the business owner feels will help his/her business. Why is this merchant cash advance more convenient than the other types of merchant loans?

1. Looser Requirements

Eligibility for a merchant cash advance depends mainly on the amount in credit card sales that a merchant processes. As the amount in monthly processed credit card sales increase, so does a merchant’s possible funding amount.

The merchant cash advance is completely unsecured. Therefore, even if a merchant has no collateral, he/she may still be eligible to receive a merchant cash advance.
Looser requirements also mean more merchants can be eligible to receive a merchant cash advance.

2. Renewals

The merchant cash advance can be renewed approximately every three to four months. Merchants are allowed to renew their advances as many times as they please. This comes in handy for many merchants because it allows them to have business funds available to them at all times.

3. Fast Funding

Most methods of business financing take a considerable amount of time to actually come through for a merchant. The application, review and funding processes of other types of business funding methods can last longer than a merchant would wish. But with the merchant cash advance, small business owners can be approved in 48 hours and funding can occur as little as ten business days.

4. No Restrictions

Merchants who chose to use a merchant cash advance as their source of business financing are allowed to use their funds however they please. This means, merchants can have funds to increase working capital, update equipment, increase advertising, renovate, etc.

Merchant cash advance lenders will not ask a borrower to write out a business plan or develop a presentations outlining how the money will be used. The decision of how to use the funds is left completely up to the business owner.

5. Automatic Repayments

Merchant cash advance repayment procedures differ greatly from other types of merchant loans. The merchant cash advance lender will automatically deduct a small percentage from a business’s daily credit card sales until total payback is completed. This payment method allows payback to go with the flow of business, which is very convenient for those working in the retail/service-oriented industries.
With the availability of the merchant cash advance, merchants can get a loan so they no longer have to feel alone when it comes to business financing.