Why should you begin the new year thinking about getting a merchant cash advance for your business? Well, let’s see. To us, here at Synergy Merchants, the answer is simple. But we know that it requires a not-so-simple explanation. The simple answer is that a merchant cash advance will give you the opportunity to grow your business without the hassles that come along with trying to acquire a business loan.
So what is the not-so-simple explanation? Well, it all comes down to deciphering the differences between merchant cash advances and business loans. And, since there are so many differences, it can be hard to consider where to begin. We figure the best thing to do would be to start with the application process. With a bank loan, business owners usually need to come equipped with a long list of items.
What is required of business owners during the business loan application process? Generally speaking, you’ll require a detailed business plan that outlines how much money you’re looking for and exactly what you plan on doing with the money to grow your business. As well, a plan for how you intend on making the money back in order to repay your loan will be pretty important.
However, your bank will also want assurances that you’ll be good for the borrowed money in your worst-case scenarios. A credit check will be necessary so that the bank can assess your history with borrowing and paying back money. Collateral is also asked for to ensure that if you can’t pay the money back on time, the bank won’t lose out. Often, this means putting a major asset, like your home, on the line.
What is required of business owners during the merchant cash advance application process? A review of your company’s previous credit card and debit card sales is needed. That’s pretty much it. By discovering your average monthly sales amount, a licensed funding specialist can easily determine how much of a merchant cash advance you’re eligible for and how much it would cost you.
This is another major difference between merchant cash advances and bank loans. With loans, you are charged an interest rate that accrues over time. You’re also required to make monthly minimum payments by specific dates. With merchant cash advances, you are charged a one-time fee and there is no repayment schedule. That means that the amount of the advance and the one-time fee represent the total amount that you’ll have to repay no matter how long it takes you to repay.
How are merchant cash advances paid back? For most business owners, this is the best part about merchant cash advances! Payments are made automatically through a small percentage of your future credit card and debit card sales. Long story short: you only make a payment after you have been paid first. If sales are slow, so are your payments. If sales are good, your payments pick up. It’s that simple!
Are you ready to begin the new year with this inventive, quick and easy way to finance your plans for business growth? For more information about our merchant cash advance program 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 or email us at firstname.lastname@example.org.