Merchant Cash Advance Funding Solution Can Transform The Various
Types Of Retail Businesses
importance of various retail businesses
various day-to-day needs of the humans cannot be accomplished if not
for the various types of store/retail businesses like the grocery,
health store, supermarkets and its types operating in the community.
While these businesses are essential, certain businesses like the
liquor business are considered luxurious that is required, at times,
to heed to our hedonistic needs. To simply put, a society is not
operational if not for these stores that signifies the importance of
the respective store businesses and the necessity to care for them
financially to benefit the business, which in turn can benefit the
society by providing quality goods and services.
the reality of these various types of store businesses availing
necessary funding for their survival and development is pathetic, if
not for the availability of comprehensive small business financing
solution like the Merchant Cash Advance or the MCA!
various financial challenges faced by these various store businesses
delving deeper into the subject of merchant cash advance, let us
understand the various challenges faced by these business owners when
trying to borrow funds for their respective business from the
conventional lending sectors like the banks.
lack of quick financial remedy
survival of the business also lies in its efficiency or the speed of
its operation, which gets disrupted by the unavailability of the
funds to cater to both the business’ and the customers’ needs. In
such a situation, the respective business owner strives to raise the
working capital by approaching various banks for the appropriate bank
loans. First of all, a business owner cannot be sure if a loan would
be sanctioned to satisfy his/her business needs and on top of that,
the time taken to consider and complete the process is too high that
disqualifies the purpose of seeking a financial remedy!
the paperwork involved to initiate the loan process is colossal that
does not allow for the financial remedy to reach the business at the
bank loans and other types of loans offered by the conventional
funders are suitable only for those business owners with a
satisfactory financial report card that is, with a good credit score,
decent credit history, no overdrafts, no problem of NSFs and such
conditions that prove their trouble-free financial situation. But,
unfortunately, running a business isn’t that easy due to the
significant challenges involved, which sometimes render the business
owner to produce an unfavorable financial outcome.
such owners, no comprehensive financial solution is available through
these conventional lending institutions that turn their business’
situation even more pathetic. Especially, if you are running the
liquor store business, which is considered as a high-risk business,
getting a conventional financial remedy is almost impossible!
thankfully, every problem comes with a solution and in here, we have
the alternate funding solution in the name of comprehensive MCA.
financial boon called the merchant cash advance
merchant cash advance is a unique funding solution for the business,
where, unlike the traditional long-term loans that allow you to
borrow money with some specific interest rate for the specified
period, this short-term unsecured business loan, provides your
business with some advance funding amount, for which you have to
accommodate using the percentage of your future credit or debit
sales. Here, there is no concept of interest rate but, only the
concept of factor rate prevails that determines, how much amount of
money you should payback using the percentage of credit sales carried
out by your business. Also, even if you have a BAD credit or if your
business suffers from high NSFs, your plea for funding assistance
would still be processed without any complications.
is, say, your business needs $50K for raising the working capital and
you are being paid this funding through the MCAwithout much paperwork
and without the need for a collateral, for which your repayment would
be decided based on the factor rate provided by the MCA lender, which
we can assume here to be 1.2. So, the total money, which you have to
repay within the stipulated short period of time, which might be from
6 months to 18 months or rarely, even more, is obtained by
multiplying your borrowed sum with the factor rate. That is, here, it
is $50k x 1.2, which is $60k!
$60k is the sum you would repay using the percentage of credit or
debit sales that your business achieves within the stipulated loan
period. Since the loan is paid back with the percentage of the credit
sales, the merchant cash advance process is sometimes referred to as
the credit card factoring, which is entirely different from the
traditional factoring concept. Thus, this is a straightforward
business funding solution that excludes you from facing too many
pressures and preparations.
can be the loan purpose
retail store like yours should be in a position to tackle the
expansion that includes the cost of the rental space, hiring
process, payroll, procurement of goods, infrastructure-related costs
store maintenance or infrastructure changes
or more of these requirements are bound to happen anytime in your
small business, which means anytime you should possess the ready
funding. This ready funding is only possible with the merchant cash
advance or the business cash advance (BCA) that negates all the
drawbacks of the traditional bank loans.
the event of additional funds requirement
you are amidst the chaotic situation of establishing your store’s
new branch, you might be in a need to further your inventory
purchases, for which there is the need for the emergency or
additional funding. Even this can be achieved uncomplicatedly by
resorting to the merchant cash advance, where even if your 1st
position cash advance is yet to be paid-off, you can easily avail the
position cash advance to accommodate for your inventory purchases.
Likewise, you can avail easily the 3rd
position, the 4th
position and, the maximum 5th
position cash advances if you are in need of any additional money for
your small business.
amount of money allowed to borrow is also flexible, where ranging
from $5K to $500K, or sometimes, even more, you can enjoy
trouble-free funding for your business when you resort to the
merchant cash advance way of financing your store business.
after having rejected by the banks, you need not feel doomed as there
are much more favorable alternatives to the bank loans to fund your
critical business, among which the merchant cash advance is the
highly preferred one due to the obvious benefits and uncomplicated
process that can provide you the necessary funding quickly!