Businesses nowadays have a hard time getting loan approvals. Investors have teamed up and found a way to help the small businesses acquire working capital at the same time minimizing the risks they are likely to face. The less the risk the business posses show its eligibility.
The investors not only focus on the creditworthiness only but also the earning capability of the business. They are able to do this by looking at the past few months of the business earnings statements and determine an estimate of the future earnings. Their main focus is based on the business MasterCard/Visa sales since their payment will be made through the processor.
Let’s say your business processes $10k monthly in the credit card sales, and then they can offer up to $20k where the amount varies. They will set up a certain percentage of your credit sales daily as payback for the advance cash. It is an automatic process that minimizes chances of defaulting. This feature makes it possible for businesses that have been rejected by the banks access the cash advance for their business funding.
It is important to note that the approval rates for the credit card advance loans are high. The approval periods take 24 hours and you can access the cash in less than a week. There is no collateral needed and has a flexible payback strategy which matches with your daily business operations. The approach does not have late fees or monthly bills associated with it.
This type of funding may commonly be referred as merchant cash advance, business cash advance or merchant loan. Either way, it is the ideal way to get your business a working capital and keep your business growing even when banks have turned down your loan requests.