Most Companies Do Not Know About Unsecured Business Loans, a Nifty Financing Tool
Unsecured business loans are a scarcely used financial method that gives necessary funding to business owners via their merchant account.
A very little amount of entrepreneurs realize that they have this choice and go straight to family or a bank when they need cash to pay for expansions, repairs or upgrades of their stock and equipment.
If you are an entrepreneur in need of capital fast, you should look into this method of merchant financing as well.
The idea behind merchant cash advances provided as unsecured business loans are a bit like selling futures.
You, as the merchant, agree to sell a portion of your future credit card revenues at a cheaper price to the factoring company.
The money is given now in exchange for future receipts in the next several months.
These agreements are most commonly for the near term, rarely more than one year, and are an excellent way for a merchant with a verifiable credit card sales track record to get wanted funds.
Unlike a traditional loan, in which the repayment term is set for the duration of the loan, a factoring arrangement takes into consideration the truth that in almost every enterprise there are excellent months and bad ones.
Your payment is directly tied to your credit card receivables, as a portion, not a set number.
If you have chosen to pay a 10 percent daily capture and you receive 8,000 dollars one month, your payment that month comes out to 800 dollars.
In following month you may receive 10,000 dollars and pay 1,000 dollars.
This flexibility is a great thing for a growing company though restaurant financing.
An extra benefit of a merchant cash advance is the quickness,short time in which the funds turns up in your possession.
While a bank may take several months to make a decision and tell you how you utilize the working capital when and if they give it to you, with a factoring arrangement, you will have the cash in about a few working days, and you can utilize it for whatever you see fit.
A very little amount of entrepreneurs realize that they have this choice and go straight to family or a bank when they need cash to pay for expansions, repairs or upgrades of their stock and equipment.
If you are an entrepreneur in need of capital fast, you should look into this method of merchant financing as well.
The idea behind merchant cash advances provided as unsecured business loans are a bit like selling futures.
You, as the merchant, agree to sell a portion of your future credit card revenues at a cheaper price to the factoring company.
The money is given now in exchange for future receipts in the next several months.
These agreements are most commonly for the near term, rarely more than one year, and are an excellent way for a merchant with a verifiable credit card sales track record to get wanted funds.
Unlike a traditional loan, in which the repayment term is set for the duration of the loan, a factoring arrangement takes into consideration the truth that in almost every enterprise there are excellent months and bad ones.
Your payment is directly tied to your credit card receivables, as a portion, not a set number.
If you have chosen to pay a 10 percent daily capture and you receive 8,000 dollars one month, your payment that month comes out to 800 dollars.
In following month you may receive 10,000 dollars and pay 1,000 dollars.
This flexibility is a great thing for a growing company though restaurant financing.
An extra benefit of a merchant cash advance is the quickness,short time in which the funds turns up in your possession.
While a bank may take several months to make a decision and tell you how you utilize the working capital when and if they give it to you, with a factoring arrangement, you will have the cash in about a few working days, and you can utilize it for whatever you see fit.
