Business Financing & Merchant Cash Advance for Commercial Distributors Manufacturers

Be it, anyone who is into business, he has a merchant account and this account is used to hold the money from various transactions that are done using the credit card. It is important to know that the merchant account can get you some really fast financing for your business which is into manufacturing distribution.

A distributor is just a link between the retailer and the manufacturer. When you are a distributor manufacturer, this helps you to cut down the expenses that you would incur as a distributor. The new and the small business that is unable to afford a commercial distributor are their own distributors and these are known as commercial distributor manufacturers.

Why does a commercial distributor manufacturer want to finance?

The role that the distributor plays is not complicated but they would have to keep changing their ways to meet the competition in this industry and to keep themselves up to date with the changes happening in the industry. This holds true when you are your businesses, own distributor. The reasons why you may need funds are:

  • Purchase of new equipment – You would need to borrow to purchase new equipment for your business. You would need working capital to change yourself to the business ways that are followed today.

  • E-commerce – This is not just about doing an online shopping or having your own business website. Customers now look for channels that offer them better sales like omni-channel. They need websites that are more user-friendly and also give a good user experience. They also need to market their business using the social networking websites.

  • Improving the back end system – The back-end systems like inventory management, client management, shipping and ways the client has managed needs changes too. You would need funders for this because the way your back-end system operates can affect how the supply chain works which is important for any business.

  • Expenses related to payroll - Business needs capital in order to keep the workforce and their talented employees well paid. When the sales pick up one can compensate for this.

  • For business expansion – When it comes to distribution business, this means the more space you have the more business you have. So you would be needing business funding in order to increase space for the businesses warehousing needs.

  • Customer service–Customer service is something that needs constant improvement and has to be top notch no matter which business you are in. It needs funds in order to upgrade the customer service and in order to maximize the customer satisfaction.

Ways to finance your business

For the short term financing of your commercial distribution business, their are many bank loan alternatives that you could choose to raise working capital:

  • Line of credit

  • Merchant cash advance

  • Alternative loans

  • Invoice finance

If you are looking for alternative funding solutions then merchant cash advance is your best bet. This is convenient and also allows easy loan disbursal. This is thus a winner when it comes to borrowing money if you are a commercial distributor. It is especially useful if yours is a startup business.

All about merchant cash advance

MCA in simple term is like using your credit card transactions in order to get a loan and then repaying for it. The lenders do not ask for proofs and forms or collateral. All that the lender will look at is the transactions history of your credit card to know the amount of loan that you are eligible for. You will then have to repay back the loan which is pre-decided as a percentage of the daily transactions on the credit card.

The benefits of opting for merchant cash advance for your commercial distribution business

If you are into a small or new business then MCA is a great way to get capital for your short-term uses. The loan has man advantages over other forms of loans:

  • The application process is simple and easy and is completely hassle free

  • You would have to show your bank statement and your tax return papers along with your credit card statement to apply for the loan

  • The approval rate is almost as high as 98%

  • The disbursal of the loan can be in as low as 1 to 3 days and sometimes even in hours of applying for the loan

  • In a case where you cannot take a traditional bank loan, go for a merchant cash advance

  • Bad credit ok or high NSF ( not sufficient funds) do not stop you from applying for the merchant cash advance

  • The repayment plan is easy as it is a daily sales percentage which is agreed upon beforehand

  • Repayment period is from 6 to 12 months

  • The repayment amount gets debited from your merchant account on an everyday basis

  • Use loan amount on anything as there are no restrictions imposed on the same

  • No monthly interest rate is applied to the loan that should worry you

  • You do not need to keep any collateral to be eligible for the loan thus it is unsecured loans

Additional funding requirements

For your small business financing, you may need funding from time to time. Merchant cash advance gives you additional position advance funding with no collateral.

2nd position funding is where you apply for a loan before you have fully repaid your 1stposition. You can take another loan after your second funding and also multiple loans. The additional fundings are named as 3rd position, 4th and 5th Position and so on.

This is called stacking and the lenders of the merchant cash advance give you an option to consolidate these additional loans into one as this allows easy repayment.

Even if you have a bad credit it is ok when you apply for funding through a merchant cash advance. This is thus one of the best ways to fund your commercial distribution manufacturing business.

The merchant cash advance can be applied from anywhere you are and at any time. The process is completely transparent and the products are customized to your business needs exclusively as one size does not fit all business types.

"CapVance will  save  our client  money without sacrificing  quality service  that is how  we have a  client for life"-                                                                                                                                                                 Bill O'Donnell, CEO and President