In the service and retail industry, employees are the backbone of a business. Hiring the right staff to keep the business alive is a not a cheap expense.
As a business grows, more employees are needed to continue to ensure the business operates smoothly, allowing the owner to work on growing the business further.
A merchant cash advance provides working capital for merchants (business owners) looking to cover the initial expenses of hiring new employees until they are fully productive.
Like any other business, restaurants have many side projects, expansions, marketing costs, and/or unexpected costs in running the business. As such a restaurant can get a merchant funding otherwise known as a merchant cash advance.
For example, after a successful advertising campaign, a restaurant owner received a huge increase in customers. Consequently, with customers having to wait longer and longer to be seated, the owner decided that expanding the seating area would be necessary to keep his customers happy and in turn grow his business.
A common question amongst business owners looking to secure financing for their business is: “What is a merchant cash advance?”.
Consider this example:
The main dispensing machine in a frozen yogurt shop stops working. The business owner calls for the technician to come and repair the machine. Unfortunately, the tech tells the business owner that it is not possible to repair the machine and that it will have to be replaced. This is bad news for the business owner, sales in recent months have been down and he doesn’t have the money available to replace the machine. Furthermore, in the recent economic down turn his personal credit has been adversely affected and his bank has already turned him down for a line of credit.
Without the equipment, he has little choice but to close his doors. However, if he can replace the equipment he can keep his store open.
Recently, credit lines have been drastically cut, directly affecting small businesses. Once a small business may have had a $100,000 line of credit, now they may only have $50,000. This has caused a strain for a plethora of entrepreneurs, making it more difficult for them to keep on running their business.
Unfortunately, these credit lines were the extra support that many businesses needed when confronted with a bad month of sales, or encountered unexpected financial business expenses. Without a line of credit, many businesses have even been forced to close due to the lack of cash flow. A merchant cash advance can provide the line of credit that these businesses needed to stay open.
More and more business owners are seeking alternate funding sources in 2013 since the banks are still making it challenging for business owners to secure traditional loans or working capital. Alternate funding sources are more likely to approve a business for a cash advance because this is not a traditional loan product but more of a factoring program. The funding requirements are much less stringent. For example we do not require: A traditional personal guarantor, collateral, high credit scores, or reporting to credit bureaus.
If you find yourself in the position of needing money for your business, one of the best and fastest options to get a cash advance for business is to apply for a merchant cash advance.
A merchant cash advance works by allowing us to purchase a portion of your future credit card receipts at a discounted price. You then pay off your advance through a set percentage taken from your daily credit card sales so you are not burdened with one large payment due. The percentage which you will pay from your daily sales will be determined by the amount of the cash advance you were given as well as your month credit card processing amount.
Odds are if you have less than good credit, most financial institutions will deny or decline a small business loan. The good news is that this isn’t your only resort. With a merchant cash advance, small business can get the working capital they need as the requirements for a merchant advance are different from a bank loan. Before determining what is best for your business, it’s important to know the differences.
With both a loan and a merchant cash advance, you are applying for money, but that is all they have in common.
One of the best advantages of a merchant cash advance is that you stand a better chance approval than you do with a bank loan.
It’s been several years since the disaster in New Orleans occurred. It was hard to believe (then) that the city would ever regain it’s flavor, and become a viable place to live, visit, and play. That day has happened, and that day is now. The city is back on it’s feet, and better than before offering Mardi Gras, Jazzfest, Casinos and more. 10.1 million people visit the city each year, and bring their wallets ready to spend their hard earned money. At Fast Merchant Advance we have seen the trend, and it’s going up at a rapid pace.
When a new merchant comes to us for a merchant cash advance, and decides to move forward with the application process, there are other documents we need to receive in order to correctly underwrite a merchant cash advance. Compared to loan/advance industry standards, Fast Merchant Advance makes this step fairly easy. Banks, as well as some of our merchant cash advance competitors request mountains of paperwork that are mostly unnecessary, and quite frankly are a pain for most merchants to put together and send. Fast Merchant Advance’s process is streamlined, and geared towards making it quick and easy for a merchant to apply for a merchant cash advance. Following are the documents that Fast Merchant Advance needs to begin the underwriting process. Very rarely do we ask for more documentation before a decision is determined.
