During any recession banks are less likely to lend money, plain and simple. This is tough, because all we hear during a downturn is that we need to stimulate the economy. We also all know the saying, “It takes money to make money.” So how can a business owner expect to improve business if he/she can’t get funding for that expansion loan, working capital, payroll loan or just a good old fashioned cash advance.
This is where credit card receivable financing or the merchant cash advance comes into play. Business owners that miss a traditional cash advance because of poor credit or business history may qualify for a cash advance based on monthly credit card sales. One thing that is attractive to companies about the merchant cash advance is that, when they have a slow sales month, their payment to the advancing company is lower since they collect a set percentage of credit card sales. Another attractive feature? There is no actual due date for the advance to be paid off. It is paid off when enough credit card sales are made for the advancing company to recover the advance and their premium. In addition, no collateral is required to secure the advance.
Is it a perfect solution in a tough economic time? Of course not, but it can be a very good way for a business owner to receive a cash advance quickly and not have to deal with all the parameters of a small business loan. So if fast funding on a cash advance and the lowest rates in the inustry is of interest to you. Contact Walnut Financial today.