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Business finance, as many a business owner knows, can be tricky to secure with a stringent application process.
Due to the economic climate, the banks are much more reluctant to lend and tend to be much stricter when assessing applications for business finance. Even if you do get accepted for the business loan, there are usually strict monthly repayments and early repayment charges if you wanted to repay the balance early.
Bank business loans aren't the only form of finance available however. There is a business finance alternative that is quickly growing in popularity. It is known as a merchant cash advance and is available from many lenders who have a strong online presence.
Many of these lenders have built up a strong reputation for providing a flexible business finance alternative.
What makes the merchant cash advance so flexible is the fact that there are no fixed monthly repayments. The balance is repaid from an agreed percentage of your customer's future credit and debit card transactions.
If your business processes more than ??3500 per month in card transactions then there is a good chance you will qualify as acceptance rates are exceptionally high.
This flexible repayment method means that if your business picks up and you start to process more card transactions then the advance will be repaid quicker than anticipated and likewise if your business is experiencing a slack period then you don't have a fixed monthly payment, like with a business loan, that may hurt your cash-flow.
Some online merchant cash advance lenders have 24 hour online tracking systems meaning you can see exactly where your advance is up to any time day or night.
I was reading about one small business who used a cash advance, and they wanted to extend their range of stock and needed about ??15000. They had sourced a real bargain on a batch of great products that they knew they could turnover quickly but didn't have the funds to purchase.
They used the cash advance as a business finance alternative as their bank declined them for the loan. Apparently everything went to plan and the stock did indeed sell quickly which meant that they repaid the cash advance much quicker than anticipated.
The application process for a merchant cash advance also tends to be much simpler than a bank loan and the money is usually available within two weeks.
So if your business needs finance then don't just look at the banks. Consider all business finance alternatives including the merchant cash advance.
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