Why Merchant Cash Advances are a Good Alternative

By John Walters

Over the past few years, merchant cash advances have become really popular with business owners. This niche product has won the affection of many business owners who have come to rely unsecured forms of business funding. Merchant cash advance providers have really done a good job in filling the gaps that have been created in the business lending world.

Working capital is an absolute necessity when it comes to small businesses being able to really grow. Sometimes you go through a rough patch with sales, and other times you need help getting to the next level. Either way, business capital is one constant in business. It always has been and always will be. The horrendous economic growth is caused largely due to the fact that banks have not been lending at all. They are all too scared to lend. Consumers and business owners have both experienced this. It's really bad that small businesses can't grow since they're a big contribution towards economic growth in general.

Merchant cash advances work by advancing a lump sum of money to small businesses in exchange for a specified amount of future revenues. Credit card processing sales are usually the subject of the purchase and sale, although those revenues can come in a number of different ways.

The advantages tied to utilizing this type of business funding is quite significant. This type of business funding never comes with a personal guarantee. To get this kind of funding, you'll never be asked to use personal or business assets to guarantee repayment. Many business owners find a lot of relief in this fact due to the uncertainty they experience every day in this economy.

With traditional small business loans, payments are fixed and due at a certain time. Merchant cash advances have payments that vary with the flow of your business. You're credit card processing revenue is usually divvied up. It's based on a fixed percentage. As a result, how much you pay back each month varies. This is because the amount that you process each month varies. In slow months, your payments will be lower. Your payments will be higher in months that your sales are higher, which should be okay because you'll have stronger cash flow.

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A great website to check out is http://smallbusinessloanoptions.com. The business funding providers that they can match you will maximize your chances of getting approved and allow you compare quotes.