How To Fund Your Small Business
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Every business owner, who wants to develop and grow, comes to the point when she/he needs extra money in cash-desk or bank, to boost sales, step up inventory or just to keep liquidity in his business, at the suitable level.
Unfortunately, it's not always easy, to get the needed money quickly and without bureaucratic problems. Sometimes this is a matter of time and business loans can take a month or so to close. Not mention the monthly payments which, might be more than you expected and can afford. |
Shortage of cash, can force many small and medium sized businesses into bankruptcy or, at least, into liquidity problems. If you are owner of the business that accepts credit cards payments, then you should consider joining with a company that offers, credit card processing with merchant cash advance. If you need extra cash, this unique offer could be a welcome way to do that.
How Merchant Cash Advance Works
The whole idea of credit card processing with merchant cash advance in fact, is a loan process in which you
(the borrower) will pay back the loan, based on future sales (credit card payments).
In fact, the credit cards processing company, will give you a cash advance in good faith. This cash advance will be based on potential sales, and the only condition is that, you have to accept Visa/MasterCard cards, using machines.
(the borrower) will pay back the loan, based on future sales (credit card payments).
In fact, the credit cards processing company, will give you a cash advance in good faith. This cash advance will be based on potential sales, and the only condition is that, you have to accept Visa/MasterCard cards, using machines.
Owners of credit business, prefer the percentage set-up. If you will have a slow month in sales, you won't be stuck paying a high loan payment. When sales is temporally down, the monthly payment will be accordingly reduced. Card processing company, will take a small fixed percentage of your daily future sales until, the balance is paid
in full. This is a really win-win situation.
In which situations, credit cash advances work the best?
In all situations when, you need extra money quickly to boost your business. For example, for extra inventory of products that are hot-sellers right now, to stock extra inventory for upcoming Christmas or other seasonal events, for refurnishing or remodelling of your existing business, to buy quickly new equipment really needed or, to hire extra staff, when business develop. In all such situations or similar ones, you may use this fine service of cash advances through credit card processing. This service can be used in any business where, you accept credit cards sales, by point of sale machines.
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There another problem could arise - a cash flow problem. This kind of problem can happen when sales drop, but at the same time, business expenses and incoming bills, stay at the same level.
This could lead to loss of liquidity, loss of credibility in suppliers eyes, lay-offs or in the worst case, the closing down of the business (bankruptcy). Sales drops occur in the every businesses, from time to time.
This could lead to loss of liquidity, loss of credibility in suppliers eyes, lay-offs or in the worst case, the closing down of the business (bankruptcy). Sales drops occur in the every businesses, from time to time.
If you have got a high costs base like, renting building space, utilities, loans, and so on then, sales drop could hurt. The first reaction of business-owners are lay-offs. Then, the next coming the reduction of inventory which, in turn can hurt sales. This is a self-tightened belt moving.
However, you may escape such scenario by using the merchant cash advance service, to get your cash flow, stay at the suitable level.
However, you may escape such scenario by using the merchant cash advance service, to get your cash flow, stay at the suitable level.
This service for sure beats the "traditional" business loan if, we will take the interest rates by itself, not mention the necessary financial flexibility, it will bring into your existing business.