Business Cash Advance for Merchants Who Accept Credit Cards

August 18, 2008

Have you been looking into raising capital for your business? If you are a business owner and accept credit cards at a brick and mortar location there is an untapped alternative funding option that you need to know about. It is called a Business Cash Advance or Merchant Cash Advance. This short term financing is actually a cash advance against your future credit card sales.

How it works is a small percentage is deducted from your monthly merchant account sales until the advance is paid in full. Instead of a fixed monthly amount each month like a loan, it is a set percentage amount of your monthly sales. If you have a bad month the same percentage amount is taken out of your sales but that amount is not as large as if you had a great month. These payments work with your monthly cash flow.

Business Cash Advance Benefits to Merchants:

No Application Fees, Appraisals or Closing Costs

Will Not Affect Personal or Business Credit Lines

No Obligation to Find out How Much You Qualify For

Flexible Repayment Terms

Minimal documentation

Payment Aligns with Cash Flow

High approval rates- Currently averaging 85%

Leave Traditional Lines of Credit Available

Not based on personal credit history

Easy application process

No Personal Guarantee or Collateral

Collection is automated through future credit card swipes - no checks to write

Entire debt obligation usually completed within 6-8 months

Fast funding - as few as 7-10 business days from application\r

Business Cash Advance is a unique alternative funding source for merchants. It is an untapped short term financing that can help businesses get working capital they need now based upon future credit card sales. Most merchants do not even know that this type of funding is available.

Ways Merchant Use Business Cash Advances:

Pay off Business Debt

Grow the Business

Working Capital

Renovate the Store

Upgrade Equipment

Make Repairs

Pay Taxes

Pay Payroll

Open New Locations

Purchase Inventory at Discounts

Advertising and Promotional Programs \r

If you business does not accept credit cards or have a brick and mortar location, there are still other ways to get working capital. In my article; Small Business Funding and Business Startup Loans I discuss various types of financing available to small businesses. Sometime these creative funding types are often overlooked when a small business is looking for working capital or help with debt restructuring or settlement. There are many ways that you can jump start your business with the cash you need.

Paul Kopp is the Founder and CEO of Kopp Enterprises, Inc. Paul has been a Home Based Business owner for over 7 years. Currently he operates 2 online businesses and also is involved in numerous non internet related businesses. Paul createdHome-Based-Business-Solutions.com to give quality information and resources \r to start and run a home based business smoothly and profitably. He covers all \r the topics from A-Z for home based businesses. This article and others can be \r found at his Business Resource Center.

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