A merchant cash advance is a type of loan in which a business applies for and receives a lump sum of money from a lender. In return, the lender receives a small percentage of the business’s future receivables. One type of business that may benefit from merchant cash advances are seasonal businesses, which are businesses that experience a significant drop in operations during their off peak season. Some examples of seasonal businesses are fishing charter companies and businesses that operate winter or summer sports in vacation areas. Merchant cash advances for seasonal businesses can help them to expand or meet their payroll obligations during the slow period.
Fast Funding For Merchant Cash Advances
If you own a seasonal businesses, you understand that time is of the essence. If you want your business to be a success, you don’t have the luxury of waiting for a traditional bank loan to be processed, as this could take several month. During that time, your business could be failing or losing money. A merchant cash advance can be processed very rapidly, and most business owners will receive the money within only a few days of submitting an application.
Easy Repayment Options
When you receive a merchant cash advance, you don’t need to repay it in a lump sum. Instead, a small percentage of the business’s daily transactions are directed toward paying off the balance. This is a good thing because you don’t have to worry about paying it back during the off season, and the days when you have more sales, you’ll be paying back a larger amount. This helps you work towards clearing the balance owed. Many banks that offer strict, traditional loans will often penalize borrowers who don’t repay the full amount on schedule. The merchant cash advance offers greater flexibility to seasonal businesses that need it.
No Hoops to Jump Through
A merchant cash advance requires very little up front. While regular banks often have strict criteria for approving a loan, your credit history is not taken into consideration when applying for the cash advance. You do not need to provide any collateral, which is normally needed with a secured bank loan or commercial loan. Since you don’t have to put up collateral, you won’t be at risk for losing your home or property if you become unable to pay back the advance. While an unsecured advance is very convenient, consumers should be aware that the interest rate on a merchant cash advance is often higher than the interest rate on traditional secured loans.
Who Can Provide a Merchant Cash Advance?
A merchant cash advance is normally issued by a merchant cash advance provider, which is a company that has a relationship with a credit card processor. Platinum Rapid Funding Group Ltd. offers merchant cash advance services to a number of industries including retail, construction, car dealerships and restaurants. They offer various funding options such as ACH or credit card splits and business owners can apply for amounts ranging from $5,000 up to $5,000,000 depending on their individual business needs. Platinum Rapid Funding Group Ltd. also offers flexible schedules for delivery of receivables, which can be set up either daily or weekly. In addition, they offer flexible repayment terms, with periods as short as 21 days up to 250 days.