Normally
the capital comes as a big problem for small entrepreneurs while starting a new
business. Due to less of capital so many small business fails and with that the
dream of entrepreneurs. To make it strong many goes to bank or start to sell
their personal belongings also like gold, plots etc.
However
this may not come as a success for everybody. There is a smart alternative way
to start a small business without worrying about the interest to pay or selling
own personal items.
What are business cash advances?
A Merchant
Cash Advance was originally
structured as a lump sum payment to a business in exchange for an agreed upon percentage
of future credit card and/or debit card sales. The term is
now commonly used to describe small business loans that are repaid in less than
18 months.
Source: Wikipedia.
In this
case the merchant cash advance providers, like
CapitalForMerchants, RapidAdvance, Advancene, MerchantCashAndCapital provides a
lump sum of money. In return they ask for either some percentage of share in
the company or a daily basis payout from future income as agreed. The
entrepreneur does his business without worrying about paying the money and
gives his best in his business. When the business grows and company starts
earning money, at that time the merchant cash advance providers get back their
money from daily earning or from the percentage of shares they own of that
company.
How are business cash advances different from traditional bank loans?
In
traditional bank loans, there are many process need to be followed before
getting the loan like application process, personal guarantee, start-up fees,
long waiting time to get money.
After
getting the loan also there are many other primary thoughts like high interest
and repayment of the loan.
However
in case of merchant cash advance, an entrepreneur does not have to worry about
long application process, personal guarantee and long waiting time to get the
funding.
Unlike
bank loan, in MCA, he has to pay from his future income, which decreases the
worry.
As in future,
if the company does well and the company earns great money and there will not
be any problem to return it from daily earning.
The low
factor rates with flexible repayment methods gives relief breathe to the
entrepreneur. Industries can growth effectively with MCA.
Industries which should go with MCA.
Though MCA
gives capital of Merchants easily with flexible repayment methods, it does not work
for all the industries.
It works
perfectly for small industry like restaurants, bars, beauty salons, auto shops,
retail stores and more, that do not qualify for regular bank loans.
As these
shops gets money from credit-card/ debit card, it is for company to repay the
money to MCA from daily earnings with effective tracking.
Best Option to choose from Market.
There are
many MCA providers who are providing capital for market and it is always
confusing to select one.
I have went
through many providers website and did a little bit of research. As per me, I
will say Capital for Merchants is the most reliable company to get
advance cash.
Facilities
provided by Capital for Merchants:
- No startup fees.
- No collateral required.
- 95% acceptance rate with approvals in 24 hours.
- Up to $500,000 cash within 72 hours without any personal liability.
- No monthly bills.
Some other websites
had condition like:
- You have been in business for at least 6 months.
- You process a minimum of $5,000/month in credit cards.
Conclusion:
Always do a
better research before opting for MCA. If you can help with better ideas then,
please write in the comment below.
No comments :
Post a Comment
You need to log in to Google for giving comments here.