Contrary to what you might think or have heard, a merchant cash advance is not a short terms loan. Rather, it’s a sale. Think of it as a purchase of your future sales at a discount. In an ideal situation, both parties are involved in the agreement for the amount of that sale along with what the discounted cost is.
Why should I choose this option?
If you’re wondering why this option is better for you, consider the fact that you’ll have much better luck getting a merchant cash advance than you might have had otherwise. Plenty of customers were turned down for loans in the past only to see that they receive the cash advance that they need. One of the chief benefits of this type of merchant cash advance is that it’s based on the success of your business and not on your personal credit. It’s also not based on your financials or your amount of time in business.
Having your own business involves lots of planning and organization, so having this one less thing to worry about will be a godsend. The last thing you want to do is miss a payment and then have to deal with the repercussions of that. With this kind of merchant cash advance, you can take advantage of no-hassle payback.
You can save your checks by instead having payments automatically held from the transactions on your credit card without any fixed monthly payment amount. Every time that you process a sale in your business, a small amount is taken and processed to go toward the overall repayment of the merchant cash advance.
With this type of merchant cash advance, the process is completely automated so that you don’t have to worry about any limits, amounts, or dates. You can use the funds in any way you see fit as long as it’s directly related to your business. Tens of thousands of businesses have already taken advantage of the merchant cash advance ISO program.
Let’s face it: No matter how successful a business is, there are times when they need liquid capital in order to function properly. This is where a merchant cash advance ISO program comes in handy.
A better way.
Quickly growing businesses need a way to cover large upfront costs, and that can sometimes mean that the business isn’t able to secure a loan fast enough. Instead of waiting to save money or to find an investor through the traditional means, it’s often much better to get a merchant cash advance through the ISO program directly from the processor of their credit card.
The reason why this program is so useful is that it offers a business a quick way of securing capital while simultaneously benefitting the originator of the cash advance. The owner of the business regularly receives liquid cash that it can then use while the originator of the merchant cash advance is repaid on a daily basis.
As a merchant, you can then use this liquid cash to expand your efforts. Perhaps you want to add more locations or expand the physical location you already have. Maybe you’re looking to extend the reach of your marketing efforts. Whatever the case may be, both you and the originator of your merchant cash advance will be happy financially speaking.
How it works.
The way this all works is that you as a merchant will agree to sell a set amount of future sales to the processor that is equal to the amount of the advance plus interest. You’ll then receive the cash upfront. From there, they’ll either take a percentage of the sales automatically, or they’ll take a certain amount every day from your bank account. Either way, the process is streamlined and simple. There’s no extra paperwork to fill out every month or anything like that.
When you’ve repaid the merchant cash advance, the amount that’s been deducted over time simply stops and you go back to your method of business as before. On the merchant side, these types of cash advances are quite lucrative for ISOs, which leads to a sort of harmony for both the merchant and the business that’s receiving the cash advance.
While this list isn’t exhaustive, it should point you in the general direction of merchant cash advances through the ISO program as well as show you just why this kind of merchant cash advance is a good idea for both merchant and business. Whether you’re the owner of a small comic book shop or the proprietor of a large restaurant, you’ll find that a merchant cash advance can help to put liquid cash in your hands, all for the low cost of having a small portion of your sales taken out. It’s an ingenious and lucrative system.