Published on November 17th, 2015 | by julianjr00460
What do you know about the process of business cash advance?
Business cash advance lets the small business owners get money without any collateral, and even if the credit score is bad. Easy and quick process makes the merchant or business cash advance popular, and the process actually is over in a day or two. This means, the business owners can avail cash in a week, which is incredibly faster, compared with any other loan options. The paperwork is little, and when you receive the money, you agree to pay fees, which is a portion of the credit card sales your business makes every day, and the original advance. The portion of credit card sales of each day goes to the funding until you repay the advance.
What are the factor rates?
While the business cash advance can allure you with the speediest process, and little paperwork, you will find there are a few cons too. The major letdown is that, this is an expensive way to get cash. The fees begin from 15% and ranges to 80% of the financed amount’s APR. The fees are measured as factor rates which range from 1.14 to 1.48. The advance cash you avail is multiplied by this factor rate, and the resulting amount is what you pay back. Paying back a part of your credit card revenue of each day is mandatory until you pay off the advance cash. But, you have an advantage; you pay less, when the revenue is less. You have 9 months frame to repay, but you can still opt for short duration of 4 months, and even opt for longer tenure of 18 months. When you choose to pay higher percentage of credit card sales, the repayment time is shorter, and vice versa.
The business cash advance process involves:
• With many lenders, you can visit their sites, and choose the best option. The ideal initial step is to find what types of loans you can apply for.
• Then choose the loan types that you find apt. You need to spend some time here, reviewing about these loans, before you actually choose one.
• When you have chosen and applied for a couple of them, choose the one that has the best interest rates. There are multiple lenders, and you need to compare who offers the competitive prices. When you are using the sites that let you opt for, compare and choose the best lender, you need not pay them. Or, choose the sites that do not demand payment for these services.
• When you have identified the lender who can offer you what you need, for the best interest rates, contact the lender. Most of the lenders can offer you cash advance with simple online application process, and very little paperwork. The paperwork is nothing but you signing up the pages agreeing to pay the fee in a specific duration.
• You get the cash, and that is the process. The cash advance is approved the very next day you have applied most of the times.
While you can enjoy the benefits of merchant cash advance like instant approval, and speedier process, be cautious in choosing the best deal for you.