Credit is one of those things that you just can’t live without…supposedly. So many of today’s major expenditures such as a home or a car, require that you have a good credit rating. Having to borrow money from the bank in order to make payments on these large purchases generally entails having your credit checked.
Perhaps, there should be a whole semester on the concept of maintaining a good credit score in high school math classes. Apparently, many people have poor credit as a result of not knowing how to properly use their credit cards. One of the most beneficial things about Synergy Merchant Services’ merchant cash advance program is that it does not impact the credit scores of our clients.
Remember that a merchant cash advance is not a loan. Therefore, you are not actually borrowing money. Instead, Synergy purchases your future credit and debit card sales at a discount, providing you with the money that you have not yet made, in advance. As part of the process, our funding specialists may do a credit inquiry.
Unlike a standard credit check, however, your credit score will not be affected. This generally brings a sigh of relief to many Canadian business owners as the mere checking of one’s credit score negatively impacts their rating. This is one of those weird things about credit checks that is most certainly a nuisance.
Although impacting a business owner’s credit score is unnecessary for our program’s participants, maintaining good credit is still necessary for all consumers. One simple way to do that is to live by the rule that you “do not buy what you cannot afford”. Very simply, one should use his or her credit card as if it were cash.
That way, when your credit card bill arrives, you can pay it off in full. This will also help you to avoid interest charges. Of course, another benefit for business owners utilizing our merchant cash advance program is that there are no interest charges. Therefore, they can rest assure that nothing will accrue on their outstanding balances over time.
Instead, Synergy simply charges a one time fee for the cash advance. This way, our clients are aware of exactly how much the merchant cash advance will cost them. In the case of a bank loan, a merchant is required to make regular monthly payments. Once a payment is made, the interest charges are paid for first.
The remainder of the payment goes towards paying down the principal balance. With a cash advance, all payments pay down the balance as there is no interest to pay for. If only a credit card was this consumer friendly. Be sure to use your card wisely, so that you don’t accrue too much interest charges, and even worse, late fees!
There are no late fees with a merchant cash advance as there is no fixed repayment schedule. This is the best part about our program! Payments are made through an automated process so that each time a sale is made, and a credit or debit card is used, a small portion of that sale goes towards paying off the advance. So don’t worry, your credit is good with us!