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One of the best things about Synergy Merchants’ merchant cash advance program is that it gives Canadian business owners the freedom to do with their money what they like. Traditionally, entrepreneurs have used their advances for such investments as renovations, expansion, advertising and buying new equipment. Unlike with bank loans, merchants are not bound to specific business plans.
Loan officers at banks need to know what the money they’re allowing their applicants to borrow will be used for. This helps them to determine whether or not the business decisions are sound ones. More specifically, it helps them to determine whether or not they think the business decisions will result in profits that will allow for the borrowers to pay back the loans. To reiterate, our merchant cash advance program allows our clients to do with the money what they like.
This includes paying off debt. In fact, one of our colleagues recently informed us that he just consolidated his debt by refinancing his mortgage. “It took a lot of paperwork and time, but I was finally able to put all of my debt in one place,” he informed us, “Now I just make one monthly mortgage payment and don’t have to worry about the various balances I had and all of the different interest rates that came with them.”
Can business owners use their merchant cash advances to pay off their debts? The way we see it, it would actually be a pretty good idea! The main benefit is that it would eliminate the need to be concerned about accruing interest rates. Borrowers of loans have accruing interest rates on the balances that they owe. This means that they’re required to make monthly minimum payments towards each of their debt amounts. Not only does it become stressful to have to make so many payments, but it’s difficult to ascertain exactly how much all of the debt is costing you.
A merchant cash advance gives an individual the opportunity to wipe the slate clean – so to speak. By paying off all of your debts with a cash advance, you can avoid having to worry about interest growing on your balances. A merchant cash advance accrues no interest. Instead, a one-time fee is charged. It’s simply added to the amount of the advance to represent your total repayment amount.
Because there is no repayment schedule, you also avoid the possibility of late fees. This new version of consolidated debt is paid off through your credit card and debit card sales. Each time you make a sale, you make a small payment. You’re never expected to make a payment without being paid first.
Interest fees make it pretty difficult to get out of debt. As a result, it’s hard for business owners to properly invest their money in order to turn profits. After all, you’re never really profiting if you’re in debt. On GoodFinancialCents.com, Jeff Rose lists paying off debt as the number one way for business owners to invest small amounts of money in order to receive large amounts of money in return.
“Paying off debt is one of the very best ways to lock in an above average and guaranteed rate of return on your money,” he writes, “This is especially true if the interest charge on a credit card balance is in double digits – there are no places available to the average investor to get double digit returns that are guaranteed. Let’s say that you have a credit card with a balance of $1,000 with an interest rate of 15.99% per year. By paying that card off, you’ll lock in a nearly 16% rate of return on your money, virtually forever!”
For more information about our merchant cash advance program and how it can help you to get out of debt, or to speak with one of our licensed funding specialists to get a free, no obligation quote, simply call Synergy Merchants at 1-877-718-2026. You may also email us at email@example.com.