According to Merriam-Webster, “collateral” is defined as “property (such as securities) pledged by a borrower…
There are many differences between business loans and merchant cash advances. Let’s begin with the fact that an advance is not borrowed money. As a result, there is no interest rate and no repayment schedule. Of course, that doesn’t mean that the money is free and never has to be paid back. In lieu of interest and minimum monthly payments, cash advances come with one-time fees and an automatic repayment process that takes a percentage of a merchant’s future credit card and debit card sales.
As you can imagine, there are a number of other differences between merchant cash advances and bank loans. And the team, here at Synergy Merchants, would like to speak with you directly about them. For more information on 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.
In what ways can you spend your merchant cash advance? One of the things you’ll end up hearing from our funding specialists is that you can do just about anything you want with your merchant cash advance. That’s another major difference between our program and the traditional business loan. You see, banks will request detailed business plans to discover exactly what their borrowers plan on doing with the money that is loaned to them.
This information is meant to put their minds at ease by giving them reason to believe the loan will be paid back. At Synergy Merchants, we know that our merchant cash advances will be paid back because of the fact that our clients process credit card and debit card sales on a regular basis. Therefore, they don’t have to tell us what their plans are with the money we advance them. Of course, we always recommend that the money be invested back into their businesses.
What is one of the wisest ways to invest in your business? In our last blog, we highlighted the fact that advertising is one of the most popular ways to spend a merchant cash advance. Naturally, advertising helps to bring about awareness of brands that are looking to increase the sizes of their customer bases. On HuffingtonPost.com, Dorit Sasson writes that traditional advertising isn’t dead and recommends a number old-school ways to promote your brand.
Among them are television commercials, radio spots and print ads. “Although television and radio commercials can be a costly way to brand and promote your business, consider also buying ad space in your local paper or magazine,” she writes, “When you’re just starting out, promoting your business locally is better than trying to compete with national brands that have more visibility and traction.”
We admit that investing in TV and radio ads is very costly. And without the merchant cash advances that we provide, we wouldn’t generally recommend such marketing methods to small business owners. However, our program has assisted many an entrepreneur in launching advertising campaigns that would have otherwise been unaffordable. And we’d be happy to do the same for you! Contact us today!