The introductory examine a lot of citizen are asking is what is a merchant cash advance? An established company in existence for one year or more with visa and mastercard sales can qualfiy for a loan or a merchant cash advance on their past activity up to 0,000 from a financial custom and 0,000 or more per location from a true merchant cash advance company. The monthly median of their visa and mastercard sales x 1.5 will be a qualifying whole that the lender will fund up to. Here is an example for you, assuming your company averages monthly ,000 for visa and mastercard sales over the last year. The lender will use that ,000 x 1.5, therefore your lending base will be ,000 for this example. Pretty neat, bet you didn't know these programs were even out there.
There are many merchant cash advance or loan programs available. Some are in a the form of a loan and others are in the form of a merchant cash advance but the formulas for lending qualification come from the past mastercard/visa sales. Merchant cash advance programs can lend up to 0,00 to 0,000 and their rates of interest can range from 25-40% per annum. Loans regulated by banks are controlled by the banking rules and ordinarily fee lower rates. Obviously, it is foremost to collate the programs and understand your carrying costs, time to repay the monies back and any other risk factors that you might have.
Credit Card Cash Advance
Other questions to consider are the following, what kind of businesses qualfiy for these type of programs? The following is just a few that would fall under these lending qualifications:
limousine service, automobile centers, charm and nail salons, dry cleaners, gas stations, retailers of all kinds, restaurants, bar/nightclubs, distributors,dental/medical offices and aid providers.
The next examine is what are some of features of these merchant cash advances and loan programs:
* Loans or merchant cash advances range from ,000 to 0,000.
* No tax returns, Financial Statements or Asset Documentation required.
* Up To One Year to Pay back the loan, merchant cash advances between 6-8 months.
* No large fixed monthly payments, you pay a division of your hereafter credit card sales so the monies are repaid with the flow of your company cycle.
* Fast Approval, Within two days. Funded within seven company days.
* No inexpressive Charges and no late Fees.
* Poor Personal Credit Accepted. This is not Fico Score Driven, so credit is not an issue, Prior Bankruptcies No Problem.
* To Pre-qualify, you must own you company for at least one year.
* To Pre- qualify, you must median ,000 monthly credit card sales.
The next definite question, is how do we repay back the loan or cash merchant advance? It is from the hereafter card sales, a small quantum is paid back each day to pay back the lender. This is foremost because there are no balloon payments or monthly payments to consider. The lender calculates a small refund per day that can last up to one year.
How low is the permitted Fico score? It could be as low as 500, but each situation stands by itself.
Additionally, as this loan or cash merchant advance is paid off, your company can reapply for further funds and continue the process again. This is a great financing program for businesses that have seasonal cash flow or need to use the money for any company purpose, the decision is yours.
In conclusion, there are many separate types of programs out there, be rigorous and collate the pros and cons of each one and see which one is right for your Company.
Thanks .............J.M Luna
Up To 0,000 - business Cash enlarge Loan schedule Credit Card Cash Advance
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