Look no further - Merchant Cash Advance is the right choice for your furniture business

All small enterprises can do with extra finance to build and improve their business. But it has become very difficult for these businesses to avail traditional bank loans as they are frequently turned down. So, if you own a home furnishings or home goods store you must have experienced your share of rejections. The furnishing business is seeing an upward trend and furniture stores must keep stock of the latest rage in the market; this may be cost extra and extra cash on hand will be very beneficial.

Even those who cannot avail bank loans can receive immediate cash from merchant cash advances. MCAs are advantageous for small businesses because the repayment is proportional to the volume of sales; as a result, during off seasons or low periods, the repayment is less when compared to peak business season.

Not even bad credit can stop you now

Bad credit is one of the main reasons for businesses to not get traditional finance. Getting bank loan is not easy; the sanctioning procedure is tough and even if the loan is sanctioned you need to arrange for some personal guarantee before you are funded the loan. The other reasons are multiple NSFs, liens, and bankruptcy. If you are experiencing any of these situations do not be disheartened because there are various alternative funding solutions in the small business financing where there are lenders for whom bad credit is okay. Merchant cash advance providers advertise “bad credit Okay” as they function in ways different from traditional loan lenders and funders.

Of course, those who are just starting off new in the field and have a good credit score need not worry about getting financing.

What use can the extra cash be out to

To survive in a highly competitive business if you own a furnishing store you must stock up on the latest models and rent a large warehouse to store all the goods. Thus, besides the regular inventory management, payroll expenses, tax liabilities, repairs you will have the additional costs of the rental of the warehouse, electricity and the labor cost of the place. In case you are dealing with second-hand furniture, your expenses will be less than those businesses that deal with new furniture sales.

But not to worry we have the most suitable business cash advance program in place. Our BCA does not need perfect scores and no collateral. All loans will be approved within a day or two and you can access your money almost instantaneously.

How you use the money is entirely up to you. You do not have to deal with unscrupulous lenders anymore. With this working capital, you can build your business and reach the next level of prosperity.

Additional options

There are times when there is an urgent requirement of working capital and you do not have the time to apply for regular commercial loans. Or it is also possible that due to bad credit no lenders are willing to lend you the much-needed extra funds. And the cash advance from your merchant cash advance provider is not sufficient or is yet to arrive, at such times you can get cash advance in the 2ndposition, 3rd position, 4th or 5thposition and in some cases even the 6th position. The need for 2nd and 3rd position funding is used by some merchants as a revolving credit to clear old debts, though it is not a very prudent idea.

The interest rates are extremely high but then you will have immediate access to the much-needed cash. While getting cash advance in any of these positions is fairly simple some documentation is required. For example, the borrower must produce the actual credit scores, bank statements, a photo ID and residential proof. Most of these companies have a dedicated customer service who will provide a clearer picture should you need it. Remember this must be your last resort.

Why should you choose merchant cash advance

There are several types of lenders and borrowers can borrow unlimited funds but MCAs are very popular among small businesses who choose to expand or upgrade their business. Here are a few reasons why MCA is a good small business funding option.

  • The application is very simple, quick and easy as the lenders verify only your bank statements and credit card details before processing your loan application.

  • MCA providers do not mind how you spend the loan amount as long as the payments are on time and you abide by the rules of the contract.

  • The repayment is proportional to the sales hence you do not have the burden of paying a fixed amount each time, which is tough especially when the sales are low.

  • BCAs can is paid over a longer period; the only catch is that you will end up paying much more than what you took.

Factor rate

A key feature often overlooked while applying for a cash advance is the factor rate. Most people confuse factor rate with interest rate and hence plan a poor repayment schedule. Unlike interest rates which are calculated as a percentage, factor rate is in decimals and usually around 1.2 to 1.5. Those availing business cash advance must pay heed to the factor rate more than the rate of interest because that will decide the final payment amount. For example, if you avail a loan of $500,000 then the final payment becomes $500,000 times 1.5 which is equal to $750,000.

Hence, when you are in dire need of money and the regular bank loans and credit cards cannot help MCAs are great short-term loan options. But you will have to keep in mind that the interest rate for MCAs is very high and you cannot compare it with long-term loans with more reasonable rates. These unsecured loans can arrange for the immediate cash required to meet any essential expenses.Usually, you can avail between $5-$150K of working capital from the MCA. To make the equation between you and a lender more beneficial you can look for a loan specialist who will give you finder’s fee for every referral.

Don’t bemoan lack of resources and cash; be proactive and take things into your own hands. Set up a merchant Cash Advance account and upgrade your business, expand it and invest in the necessity marketing and inventory and see your business flourish.

"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