How Do Merchant Cash Advance Companies Help Business Owners with Bad Credit Rating?

Are you a small business owner with less-than-perfect credit trying to access business capital? You’re unlikely to have much success with banks and other types of traditional money lenders. Thankfully, there are alternatives and merchant cash advance companies are one of the most relevant sources to get quick and easy funding, even if you have bad credit history.

Credit Score Is NotThe Primary Approval Criteria

A cash advance for business owners involves repayment of advanced amount from future business receivables. It is an attractive financing solution for owners of existing businesses who simply need to provide details of historical business receivables. Unlike traditional money lenders, companies that offer merchant cash advance to bad credit business owners do not take into account details such credit score or ask for collateral. In fact, these companies welcome funding requests from what many others consider to be high risk clients and even have high approval rates.

Can Be Used for Various Business Activities

Merchant cash advance companies understand the unique circumstances small business owners find themselves in. While bad credit is a stumbling block to access required funding, the need for capital is all too real. Business funding is required for various reasons such as working capital, payroll, purchasing inventory, expansion, upgrades, hiring additional employees and tiding over emergencies. Many of these activities lead to growth and allow small business to compete with larger players. Cash advance companies understand this and offer a hassle-free application process. Upon approval, they transfer funds to your business bank as quickly as four hours or within 2-3 business days in most cases.

Different from Traditional Banking Instruments

A merchant cash advance for business owners is not a traditional financial banking instrument in the typical sense. Services offered by banks and traditional money lending institutions usually come with fixed amount repayments and strict repayment schedules. A cash advance is a more flexible solution where remittance is usually a percentage of future receivables and the amount is deducted on a periodic basis. Repayments are done till the entire funded amount and applicable charges are cleared. Usually, it is observed that banks are averse to provide funding for small businesses such as retail stores, restaurants, trucking companies and so on. However, merchant cash advance companies accept funding requests from owners of all kinds of businesses.

How to Apply For Merchant Cash Advance

If you want to apply for a merchant cash advance, the process is very simple. While applying, you will be asked for basic personal and business information. Once you submit your application and the cash advance company pre-approves your application, the company will try to match you with an appropriate lender. You may be asked for additional information pertaining to your business. Once they find a lender, you will be supplied with a contract. Once you accept the terms of the contract, the money will be directly credited to your business bank account. There are no restrictions on how you may use the cash advance – if you’re smart, you’ll use this solution for business expansion and growth activities.

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