All business owners need extra working capital in order to help their businesses to grow. Getting their hands on this money, however, is easier said than done. For many years, Canadian entrepreneurs have been used to the fact that, if they need money, they go to their banks in an effort to take out business loans. Sadly, they are also used to the fact that banks tend to turn down loan requests from small to medium-sized business owners.
Why do banks so often turn business owners down? The reasons are many. It could be because they have poor credit histories. They may also be without collateral, which is necessary to make banks feel secure in being able to have a guarantee that they will be repaid. And while the list of reasons certainly continues, many business owners complain that they were never informed by their banks as to the reasons for the denials.
What makes merchant cash advances better alternatives to bank loans? Well, let’s first begin with the approval process. It has long been proven that being approved for a merchant cash advance is far easier than being approved for a loan. And that’s because the criteria for approval is completely different. To receive a merchant cash advance, no credit checks or collateral is necessary.
What is necessary to be approved for a merchant cash advance? Applicants need only to supply monthly statements that reflect their past credit card and debit card sales. This enables funding specialists to determine a monthly average of such transactions. The merchant cash advance is based specifically on credit card and debit card sales. Using those numbers, a quote for an advance amount and its cost can be given.
How quickly can a quote be given? Funding specialists can provide quotes within minutes. Simple calculations help them to arrive at numbers that can be delivered to interested business owners almost right away. As long as an eligible applicant agrees to take the money, he/she can receive it within 24 hours. The quickness of the process is arguably the best reason to opt for a merchant cash advance over a bank loan.
What is the cost of the advance? Each merchant cash advance has its own fee. There are a number of factors that determine the cost, but it mainly has to do with the amount of the advance itself. Other factors such as business type and number of years in business can impact the cost. The way that the merchant cash advance is paid back is often heralded as the best part of the program.
How is a merchant cash advance paid back? Payments are made automatically through the credit card and debit card sales made by the merchant. With each sale, a small percentage is used to repay the merchant cash advance. Cash advance recipients never have to cut cheques, process any email money transfers or send cash at any time. Without lifting a finger other than to process sales as per usual, business owners will repay their cash advances over time.
There is also no time limit! Unlike with a loan, there is no minimum due by a specific date each month. As we announced last month, Canadian POS Corporation is proud to offer its new Merchant Cash Advance Program. The easy application process and quick access to money make it far more worthwhile than applying for a business loan! For more information, call Canadian POS Corporation at 1-877-748-2884 or email us at info@localhost.