Dental and medical providers are having a hard time in accessing funds for maintenance and growth of their practice during this tight credit period. Having a merchant cash advance is an effective way of accessing cash which can be used in expansion, remodeling, paying bills and other emergencies on time.
The absence of historical profits or a poor credit score does not hinder dental and medic practitioners to access merchant cash advances. The financing model is purely based on visa receipts and MasterCard. The payment of the loan is done monthly via the credit card receipts which are done electronically. Any time a patient makes a payment, a certain amount of the funds is sent to the funding source.
The merchant cash advance providers allow a payback time of seven to eight months. However, some sources can allow for an extended payback time. Since the cash advance is paid back electronically, the funding sources require the dental or medical professionals to change their credit card processor to suit the one they use. It is an advantage because the merchant cash advance providers are able to get great rates depending o the volume they run.
There are benefits that are associated with the use of merchant cash advances as compared to any other funding source. The cash advances are mostly unsecured and therefore no need to provide collateral. The cash also does not take long and can be available in ten days. Unlike commercial banks, cash advance does not ask for a personal guaranty. The payback of the loan is based on the credit card sales and therefore the practitioner’s cash flow is not affected.
Applying for merchant cash advance is easy. A simple application accompanied with four months of the credit card is the only requirement. It is an efficient way of boosting the dental and medical providers.