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Merchant Cash Advance: A Pre-requisite for Your Small Business

A merchant cash advance is efficient and tailored for small or medium sized businesses. Small businesses are not able to get loan easily from the banks or other financial institutions as many formalities are required by them. Lenders will lend money to merchants or businesses based on their future credit card sales. A merchant cash advances are integrated with a customer’s merchant processing and help businesses to get established.

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In a merchant cash advance, there is no fixed term or payment schedule as compared to traditional funding or bank loans. With a merchant advance, the lender collects a small percentage of the sales and this will be continued till the merchant advance is fully paid.

How much a Business can get?

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A business can qualify for that amount you will get after calculating your average credit card statements for the past 4 months. For instance, if your average credit card deposits are 200,000 dollars then you qualify for a 200,000 dollars advance. So, a business can qualify for up to 200,000 dollars.

Who are qualified to get a merchant cash advance?

  • Any business that accepts mastercard/visa or any other credit cards for transactions.
  • Merchants who are current with their rent.
  • Merchants who have been processing cards for at least 2 months.
  • If your monthly credit card sales of at least 10 thousand dollars.

Benefits of Merchant Cash Advance

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  • Cash within a week.
  • No collateral or personal guarantees.
  • No Upfront fees
  • No payment schedule or fixed term.
  • Less documentation needed.
  • No tax returns required
  • There is no fixed payment.
  • Payments will be aligned with merchant cash flow.

So, if you are running a business that accepts credit cards you can qualify for an advance up to 200,000 dollars. Merchant cash Advance will assist you to tackle the situation where you are in dire need for financing your small business.

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