Easy
cash advance for lodging and the hospitality businesses
The
hospitality businesses like home rentals, lodging facilities, motels,
bed and breakfast businesses as well as vacation rentals are often
left with several situations of sudden financial requirements. But
these are the businesses that are known to involve advance booking
and payments. Advance payments would mean that till the actual time
when the services are availed, there is always the inherent risk of
facing cancellations where the business would have to initiate full
or partial repayment. Such chargebacks can cause in a lot of
processing expenses which would not be covered by standard funds or
loans and these are unplanned expenses that are prone to occur in
hospitality businesses. In such cases of unprecedented cash crunches,
MCA (Merchant Cash Advance) acts as one of the best Bank Loan
Alternatives. This is one main reason why hospitality businesses
approach high-risk merchant providers for business financing at times
of emergency.
What
is merchant cash advance? Though there is a fancy term given to it,
it is simply a cash that is given to the business without any
collateral or without any tedious documentation and background
checks. When a situation comes where you need a reliable source of
working capital or when the cash flow doesn’t come as planned then
you would simply be able to apply for a cash advance which can then
be closed with flexible repayment options and loan terms.
Bad
credit OK options
There
are very few financing options if your business has a bad credit or
if it is relatively new. When the business is new there is a little
track record of how the business performs and to find whether the
cash flow is stable. Lenders would thus have to be able to grant
unsecured business loans without any proof of how the business has
performed in the past. This is why small business financing terms are
very much different from the traditional financial terms.
If
your business falls into the high-risk category it means that the
business has already been deemed as a high risk by financial
institutions and this prejudiced approach would narrow your options.
But high-risk merchant providers would not really bother whether the
business falls into a high-risk category or a normal low-risk
category. The repayment options are designed so as to suit businesses
of every size. And these cash advances come as bad credit OK options.
So even if you have a bad credit you would still be able to apply for
the cash advance and tackle the financial need at hand.
Loan
purpose doesn’t matter
If
you have applied for a loan you would be aware of the various types
of loans available. Each type of loan is designed specifically to
fulfill certain purposes. So you would be able to use the funds
received only for that particular reason for which you applied for
the bank loan. The terms and conditions, loan tenure and all such
factors would also vary from one loan to another. But this is not the
case with merchant cash advances. You can apply for a cash advance
for any purpose. Be it simple to manage the month’s payroll or to
get a new team on board, or to plan an expansion, you would be able
to apply for a cash advance without having to explain the purpose.
And the best part is that if you have funds to meet the purpose then
you could use the availed cash advance in any other place as well. No
matter what the purpose is the simplicity of the process still
remains. The terms of repayment as well as the steps involved would
still remain the same. This makes cash advances easier to understand
and manage.
Loan
positions do not matter anymore
Whether
it is a 1st
position loan that you have to take care of or even the 4th
and 5th
position loans you would be able to put them all together and plan an
easy repayment routine. Merchant cash advances allow you to convert
any position of the loan to a simpler and a more manageable loan that
is easier to track and easier to close as well.
You
would be able to choose from a flexible list of options for 1st
position advance, 2nd
position advance and more or even the cash advance consolidation
options. You could finally make your choice by considering the factor
rate, loan terms, and other aspects. Factor rates are different from
interest rates. There are some cases where you would be able to
receive considerable savings for paying the loan back sooner than the
tenure. Read the terms and conditions to understand why merchant cash
advances are so popular and so flexible.
When
you want to borrow, borrowing any amount is simple
One
other important attribute of merchant cash advances that requires a
special mention is the easy loan increments available. Unlike
standard loans from lenders, you would not be given tight limits on
the loan amount. The amount it takes to manage the payroll for one
business might not be sufficient to manage the payroll for another.
And there are situations when a 10K dollars cash advance would be
sufficient and there are cases when you might need a huge amount of
100K dollars or more. If the financing option at hand would help you
tackle all such diverse situations with ease then it is definitely
worth considering. And one such flexible and versatile option is the
merchant cash advance.
You
would always be able to go for more advanced when you already have a
loan running. So for the cases where stacking of funding is required
cash advances are very good. And given the less time is taken for the
processing, this is one of the best options for all emergency
situations. In the end, by handling your finances in a timely manner
by making use of cash advances you would also be able to work on
improving the credit performance of your business. This would improve
your chances of getting a better loan next time.
