What To Expect When You're Expecting A Merchant Cash Advance
By David Castro
Applying for a merchant cash advance is really a very simple process, but it is not out of the ordinary for a business owner to want to know the details of a merchant cash advance before pursuing one. Read on to find out what to expect throughout all of the stages of a merchant cash advance.
The Beginning
The first step to receiving a merchant cash advance is completing and submitting an application. Your application will provide the lender with your business' name and information. You will also need to submit documentation of your business' most recent credit card transactions. The time span of credit card documentation that must be submitted depends on the requirements of the lender that you are working with, but will generally be between four months and one year.
Once your documentation is reviewed and it is confirmed that you have been a business owner for a certain amount of time, you have no unresolved bankruptcies, you have a certain minimum amount of time remaining on your business' lease (this amount of time depends on the lender's requirements), and you process at least $2,500 to $5,000 per month in credit card sales, your merchant cash advance request will be approved and soon after, funded.
The Middle
You now have money in the account of your choice and the freedom to use it however you please for your business. Your newly acquired funds can be used to purchase inventory, increase advertisement, upgrade equipment, or for anything else that will improve your business. Meanwhile, whenever your customers use credit cards to make purchases, a small percentage of those sales goes towards repaying your merchant cash advance. The percentage that will be deducted from each sale, along with the amount of money that can be advanced to you will be explained during the application and approval processes.
The End
Ideally, there is no end to a merchant cash advance experience. Merchants and lenders often establish working relationships, resulting in a continuous cycle. This is because most lenders will allow borrowers to renew their merchant cash advance. Once a certain amount of your previous advance has been paid, you have the option to receive another merchant cash advance. The second time around however, and all other times after that, there is usually less paperwork involved, and funding can occur much sooner.
Receiving a merchant cash advance can be very beneficial to business owners. The easy to understand process and the fast funding possibilities make merchant cash advances ideal for business savvy merchants.
About the author
David Castro often writes articles about Merchant Cash Advances and Small Business Loans for Merchant Resources International - To Learn more Visit Us at http://www.cashprior.com. from http://www.FreeArticlesAndContent.com
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