Thursday, September 4, 2008

Comparing Business Cash Advance Loans: 5 Helpful Tips to Look For and Avoid

What do you do if you are a small business owner who needs cash? Is your business in need of a quick cash infusion?

Merchant cash advances, also referred to as "business cash advances" are a resourceful, excellent alternative to conventional small business loans - without the hassle. And because of the power of the Internet, merchant business cash advances are quite easy and convenient.

If your business accepts credit card payments from your customers, and enjoys specified revenues per month, your business will most likely qualify for a business cash advance based on projected future credit card sales. Merchant funding companies, like MAXX Business Solutions, make the process easy with online application and quick approvals - regardless of credit history.

  • Remember the following points when researching merchant business cash advance options:You need to have been processing credit card payments to your business for at least two months to qualify for most business cash advance loans.
  • Most merchant funding companies require a minimum monthly credit card sales revenue.
  • Be sure to get a number of proposals to compare your options carefully.


5 Helpful Tips When Comparing Business Cash Advance Loans:

Read the Fine Print on the Merchant Business Cash Advance Documents

If you're considering a business cash advance offer that looks too good to be true – that's because it probably is. Carefully read the entire application and proposal to make sure you're not missing any hidden charges, such as up-front fees or closing costs. You shouldn't have to pay either on a business cash advance, and if those are included, move on to another merchant funding provider.

No Collateral or Financial Statements Should be Required for a Merchant Cash Advance

There is no reason you should be asked for any form of collateral when applying for a business cash advance loan. As for financial statements, look for a merchant funding provider that doesn't require these at all or, at most, asks only for credit card or bank statements going back just a few months to verify your business credit card sales revenue. Most merchant cash advance providers do require the business be at least 2-3 months actively running.

Are Fixed Payments or a Fixed Term Required?

Since business cash advance payments are taken out of credit card sales, there should be no fixed payment schedules or deadlines. If the business cash advance merchant funding provider you're working with is asking for either of these, look elsewhere.

What's the Business Cash Advance Limit?

For small business growth, the cash advance amount businesses require will vary. The many merchant funding providers will offer ranges from $25,000 to $250,000 per location.

How Long Have You Been in Business and What's Your Credit Score?

Some business cash advance merchant providers will not offer cash advance loans to a business unless it's been established for 2-3 years. Again, with the power of the Internet, there are many more options available to small business merchants. Do your research. And do the same when it comes to questions about your credit score. Merchant funding companies, like MAXX Business Solutions offers business cash advance loans to businesses that have been processing credit cards for 60 days with at least $3000/month in credit sales - regardless of credit history.

Source: http://articles.directorym.net/

1 comment:

Anonymous said...

I have greatly benefited from an advance payday various times when I've been in a bind and needed money for a few days. Thanks to these payday loan institutions, I was able to get money after banking hours for my daughter's birthday party, and also various times when my checking account was a little short and I needed to deposit money in my account to save checks from bouncing. The fees I paid to get the loan was a lot cheaper than the bank fees I would have acquired. I support payday loans and these type of businesses. If used as they are intended, in a wise manner, they are a great benefit when someone is in a bind.