Why a Merchant Cash Advance is Perfect for a Retail Owner
Retail, wholesale and service businesses account for about 70 percent of total economic activity in the United States.
Based on surveys conducted by the U.S. Census Bureau, in 2006, retail and food service firms had an estimated total of over $8.6 billion in expenses, and made purchases totaling over $2.7 trillion dollars.
With so many U.S. merchant businesses, and merchant business owners spending so much money every year, merchant cash advances can be very useful in the United States.
Merchant cash advances can open doors to endless opportunities for business owners in the United States. They make it possible for merchants to get funds for their businesses that they otherwise may not have been able to come across.
Last year the Small Business Administration (SBA) alone, backed over $12.3 billion in small business loans. This may sound like a large amount of money, but with over 24 million small businesses and a large group of business owners who do not meet bank loan qualifications, the need for small business financing remains significant.
Merchant cash advances are funded without requiring collateral, excellent credit scores, interest rates, or fixed monthly payments. The maximum amount that a business owner can receive is based on his/her monthly credit card sales. The higher a business‘ monthly credit card sales, the more money the business can receive. Merchants are also not required to take the highest amount that they are approved for. If a merchant needs less money than he/she is qualified to receive, lenders will gladly lend that amount.
With a merchant cash advance, merchants are given options that they would not have if they were to get a bank business loan. Repayments are received via a small percentage that is deducted from a business‘ daily credit card sales. So, when determining the size of their loan, merchants can either tell merchant lenders what percentage of credit card sales they would like to have deducted and put towards their repayments, or how much money they would like to receive. Specialists will then complete all of the necessary calculations, and provide prospective borrowers with the numbers and information needed to make a decision.
Merchant cash advances can benefit retail and service-oriented businesses and their owners in a variety of ways. They can fund an increase in advertisement, business expansion, equipment upgrades, you name it! But most importantly, merchant cash advances are available and ready to be utilized.
David Castro often writes articles about Merchant Cash Advances for Merchant Resources International – To Learn more Visit Us at http://www.cashprior.com/
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