Find Vendors For Sales & Marketing
By Specialty
Find Vendors For Sales & Marketing
By State/Local
SalesVantage.com >> Article Archives >> Management Insights >> The 'How' of a Merchant Cash Advance

Management Insights
   
The 'How' of a Merchant Cash Advance
By Daniel Samoohi, Merchant Cash Finder

Is your business in need of fast cash to serve as a solution to hiring more staff, buying more products, or another business-related need? Have you considered using a merchant cash advance to address your needs?
Do you need extra funds to expand your business, buy extra equipment, or hire more help? Traditionally, business owners would go to the bank and ask for a loan. Depending on economical climates, a bank loan can be a lengthy process or one that is not granted at all. Alternatively, the business owner can seek a merchant cash advance.

How do I acquire a merchant cash advance?

The process is similar to finding a bank. Search the Web or Yellow Pages for key phrases such as "merchant cash advance", "merchant advances", or "credit card cash advance". You must submit some general information to the provider and then they will determine whether to grant you the funds you seek. Generally, merchant loans are easier to acquire and the funds are quickly available in contrast to a traditional, bank loan.

How does the credit card loan process work?

The merchant cash advance process involves several parties: you, the cash advance provider, the processor (that works as a 'middle man'), and your customers' credit card payments.

To receive an account cash advance, you grant the provider the rights to a fixed percentage of your credit card sales until the loan is repaid plus interest. The amount of money provided by the merchant cash advance provider and the associated interest rate can vary from case to case.

After a short amount of time, you will be given the loan and then must set up an account with the processor. Your business continues as usual, selling products and services (customers will not know you have engaged in the merchant cash advance process). The only difference is in regards to your accrued credit card funds. A fixed percentage will be forwarded to the cash advance provider. This continues until the borrowed funds plus interest is paid to the credit card loan provider. Remember that the percentage is fixed and not the dollar amount for each payment to the provider.

How can I spend my borrowed funds?

You can spend the borrowed funds on any business-related purpose that can benefit your business.
  • Hire more talent
  • Initiate more advertising and marketing
  • Buy new equipment
  • Purchase another site
  • Revamp the interior and exterior of your building
The merchant cash advance process is one that is highly-applicable to many business owners, yet some of them may not realize they have the option. Bank loans can be difficult to attain, while the transferred funds can take weeks or longer to receive. A cash advance is a viable solution for a business that is in need of extra money to propel them to the next level of success.
In a market where obtaining financing is near impossible for business owners, Merchant Cash Finder makes finding cash for your business easy again. We here at Merchant Cash Finder have found the best means of alternative financing for businesses and have given business owners the access to those who provide this type of financing. Merchant Cash Finder has partnered with the Merchant Cash Advance industry's top providers and allows business owners to receive offers from up to 5 providers in order to compare and contrast the terms of the Merchant Cash Advance. After reviewing all of the offers, the business owner can then choose the provider that offered them the lowest cost and best terms for the Merchant Cash Advance.

More articles by Daniel Samoohi
More articles on Management Insights