Business Loans - A typical advantage of business loans is that the loan lending company or the bank has claim only on the interest rate of the loan. Unlike an equity investor, the loan lender would not be entitled to percentage in business profits or share in the company. You retain the ownership of your business. Business loans can get money fast and easy for any kind of business need like starting a small business, refinancing, expanding your business, purchase or any other commercial investment.
Working Capital Loans: These loans are what most people think of when they consider getting a business loan. They come in two types, secured and unsecured. Unsecured versions of working capital loans are usually only available to those business owners with stellar credit, a sound business plan, and an established business with a proven track record. Startups are usually too risky to be granted unsecured working capital business loans. Secured working capital loans are a little easier to get although the amount of collateral needed to obtain these loans is often based on the credit of the borrower. These loans make it possible for all types of business to conduct their affairs on a day-to-day basis with available cash. Loans are commonly secured with homes, and other valuable assets.
Accounts Receivable Loans: These are short term types of financing available when you hit a tough spot and now you have money coming in at a particular time. Your business' records of accounts receivable act as a security for such loans. On the downside the interest rates of these short term loans are usually higher than a long term standard loan, and you can end up in a vicious circle of using your assets (receivables) before you get them and then not have money left before your next income period. This type of loan should only be considered in a select few types of cases of emergency such as the need to meet payroll, purchase inventory at a value, or other necessities.
Business Only Loans: This type of loan is applied for using the capital and assets of the business alone and not any personal credit or credit history of the owner. It is only available to a business with a solid record of reliable income, the long-term prospect of fluid operation, and very strong business credit scores.
Other Function Specific Loans
There are times during business operation when you need a loan for a specific type of purchase such as to buy new or replace old equipment, the purchase of real estate for the business, or other dedicated needs there are loans designed to be separately available for just those times.
This is not to say however, that getting a business loan is not possible. It all depends on where one goes looking for the loan. Typically, there are two primary options that business owners have, approaching their local banks and going to a private funder or lender.
Banks and small business loans
Banks look at applications for small business loans from their perspective and their perspective is determined by their criteria. When we speak of criteria, there are numerous criteria and these are all non-flexible as well as stringent.
As is generally acknowledged, banks are not very keen on funding small business loans. The reasons for this are many and one of the primary reasons is that, small businesses are considered to be high risk investments from the banks perspective and experience.
Private funders and small business loans
With a private lender the situation is completely different from what a business owner will experience with a bank. Private lenders have a completely different list of criteria to provide cash advance for business owners.
MCA loans V/S bank loans
As private lenders primarily offer MCA (Merchant Cash Advances), the criteria for these is simple. An MCA loan is an unsecured loan, and does not require high credit scores either. As a result it's easy to qualify for this kind of funding.
For an MCA loan a business requires nothing much in the way of credit scores and collateral. The basic criteria for an MCA loan is mentioned here, as follows. The business should be at least 12 months old and a running business. The owner of the business should not be in active bankruptcy at the time of the loan application. Finally, the gross income of the business needs to be at least R50 000 a month.
Unsecured Business Loans
Unsecured business loans - are provided without taking any of the applicant's property as collateral. So the loan is completely risk free for the business persons. Unsecured business loans are thus provided solely on the basis of repayment capability and past record of the borrower. If the credit history of the borrower is good, the loan comes at easier terms and conditions. If the lender is convinced about its safe return, any amount from R50 000 to R1.5 million can easily be availed. Because of the risks, lenders charge higher interest rate on unsecured business loans.
For unsecured business loans seekers the cost is the most worrisome factor. Higher interest rate can scare some business persons. But instead of running away from the loan, make efforts for availing at comparatively easier terms. Compare different unsecured business loans providers on internet for individual interest rates. Settle for the lender of comparatively lower interest rate. Also see if the lender is interested in providing unsecured business loans to bad credit borrowers. Apply online to the lender for quick processing and timely approval of unsecured business loans.
Surely unsecured business loans providers offer an easy finance for establishing a business. Take each aspect of the loan in consideration before applying for to a lender. The loan goes a long way in enhancing financial prospects of the venture if used wisely. Pay off the installments regularly so that you avoid debts.
Undoubtedly, unsecured business loans have many advantages, such as no risk of repossession of assets, fast processing of loans, convenient repayment options and tax deductible interest payments. Before you apply for any unsecured loan for your business, you have to draft a business plan to show it to money lending institutions. Such business plans helps in convincing lenders that his money will easily be returned back on time.
People with bad credit history can also apply for unsecured business loans, however due to the uncertainty involved in such loans, the interest will be charged at a higher rate.
Online Business Loans
Online business loans - are used by business owners who are in need of funds for the future prospect of their business. It can be used to meet the start up costs, expansion of the business, capital investments, and refinancing of business debt.
Need for cash may come any time in business and with online merchant cash advance, we can easily access the loan without delay. An online application involving details of the business person's loan requirements, repayment duration, and purpose of the loan and credit score details enables the lenders to grant the loan quickly.
Like other loans, it is also of two kind, secured and unsecured. A secured online business loans are approved against the borrower's valuable property, residential or commercial assets or the business itself. It facilitates you to borrow large amount of money with long repayment tenure at low rate of interest.
Merchant Cash Advance
Merchant Cash Advance - Merchant cash advances help business owner's open doors for better types of funding opportunities. The business cash advance industry is climbing at a continuous rate. This ever increasing growth is because traditional bank loans are not meeting the demands of small business owners.
Business cash advances are a unique funding method. It's a purchase of future credit card sales, not a loan, so we have to use specific language consistent with purchase of future credit card sales, like payback rate and discount rate instead of commonly used interest rate on bank loans. Merchant cash advances are a lot like factoring but are based on a sale that hasn't happened just yet.
A business cash advance lender gives business owners a sum of cash advance up front. In exchange, the business owner agrees to pay back the principal amount plus the fee, by giving the lender a daily percentage of their visa and master card sales until the payback is completed.
How Quickly Do You Need the Money?
With any lender, the initial application for a merchant cash advance is not a very long process. And after receiving all of the necessary documentation, most lenders can approve your cash advance in a couple of days. But, the amount of documentation that is required to process and approve a merchant cash advance may vary.
Some lenders require only an application and documentation of monthly credit card sales. Other lenders require these in addition to bank statements, lease agreements, photo IDs, voided checks, etc. If you are in a hurry, try choosing a company that requires the least documentation, this may make for a speedier process. Making sure that you have all of your documents ready to go, can also expedite the process. In an ideal situation, you may be able to have your money within three to fourteen days of approval.
Apart from the general business information, you also need to show some of your personal information such as monthly housing payments, additional debts, and percent of business owned by you. The Online business loan providers ask for these information as there is a lot of risk involved as to whether the business will run or not.
You need not worry about the disclosure of your personal information as all the proceedings in online business loans are secured and are done confidentially. Online business loans are available in both secured and unsecured forms. In a secured form, the collateral could be anything from a house or a car to your savings account. While if you opt for an unsecured loan, you do not need to put any collateral but you may have to pay a higher interest rate.
Easy Merchant Cash Advance
Easy Merchant Cash Advance - Due to their high approval rate and hassle free terms and procedures, Merchant Cash Advances are now becoming a highly preferable method of lending capital. A small business with a steady stream of credit card sales can get from 50 000 to 1.5 million Rand to use for whatever their needs may be. Can you imagine the possibilities and opportunities your business could endeavor upon with this capital?
Business cash advances, sometimes called merchant cash advances, are an extraordinarily useful alternative to the conventional small-business loans that do not cause quite so much hassle. While it seems somewhat arcane and complex, the merchant business cash advance is very simple and quite easy to accomplish for those in need. If your business accepts credit card payments from consumers and enjoys a specific amount of revenue every month on a regular basis, it is very likely that your business will qualify for this type of cash advance. The loan is based on future projected credit card sales, meaning that your revenue is the collateral against the small-business loan. Naturally, the merchant funding businesses are dedicated to making the process itself somewhat simple and it is easy to apply online in many cases.
The requirements for easy merchant business cash advance options are extraordinarily simple and very easy to qualify for. The company needs to have been processing credit card payments for at least two months in most cases. Naturally, merchant funding companies will want to require a minimum monthly credit card revenue amount, usually not a large amount, but directly tied to the amount that you intend to borrow. Of course, you will obviously want to consider the options available to you before choosing a specific type of merchant loan, regardless of what is available on the market. If you are seriously considering a business cash advance, it is important that you read the fine print and make sure you understand everything on the application so that you are not overlooking any hidden fees or charges. Upfront fees, closing costs and other types of fine-print can cost you a fortune if you don't happen to catch them the first time around. You should never be required to pay fees or extra costs on a business cash advance loan.
Most business simply renews their agreement so they have a continuous line of revolving business credit. So, is there still any glitch you find here? Apparently, there isn't. In fact, what you get from merchant cash advance is a substantial amount of capital that can help you in expanding your business further. Not only is the application is easy, you also won't have to worry about paying it back as a lump sum amount.
Business Cash Advance
Business Cash Advance - Merchant cash advance or business cash advance is perfect for business owners that have difficulty securing traditional business loans or funding. Businesses that are starting up or do not have regular cash flow cannot guarantee regular payments. Unlike loans, merchant advance is not repaid with monthly installments on fixed dates. This helps business owners as the cash advance needs to be repaid only with credit card receipts.
Though loans and merchant cash advances work differently, neither should be taken out without due consideration to certain factors.
Business cash advance providers expect their money to be repaid within the preset payment term. While loans are repaid with interest, the advance is paid back with a fee that is calculated as a percentage of the credit card sales of the business. Just as the interest rate for long-term loans is higher than short-term loans, the fee charged for the advance also increases with the term of the advance.
It is advisable to repay the advanced cash as soon as possible, as the overall cost of the advance increases with time. For example, the advance that is repaid in six months is cheaper than that paid back in one year.
Merchant Cash Advance No Credit Check
Merchant Cash Advance No Credit Check - Merchant cash advance is an option for business owners unwilling or unable to take out traditional loans. However, there are many disreputable providers in the market, and business owners need to be prudent.
Do your homework as you would before taking out any other loan. Having a clear plan to repay the advance quickly is a good way to reduce the overall cost of the merchant cash advance.
Business cash advance is a funding alternative that is revolutionizing the world of business. While a traditional loan application can take months to process, business cash advance providers release funds within a week, sometimes in less than 3 days. The application is available online and is easy to fill. Further, you don't have to provide a multitude of financial documentation to get your application approved.
Business Cash Advance Direct Lenders
Business Cash Advance Direct Lenders - Just because you have been with one bank or creditor for a long period of time, it does not mean that their service continues to be the best for your situation. As businesses grow and change so do people's needs. New companies or standing ones will often times create a better business offer in order to attract new customers. It is always good to read up on the offers and compare them to what you currently receive. Sometimes, all you need to do is go to the bank with a competitors offer and you will receive the same perks for staying put. Other times, they may just apologize and remind you about what they have already done for you. Changing banks isn't hard, but it sure does create irritation as you shuffle money and payments to the new provider. Instead of giving up out of laziness, define what it is you are after and go with the company which will provide the service.
When people think about short-term loans, they often consider a cash advance loan lender because there is no collateral necessary to obtain fast cash. It is a simple online transaction which will land a few hundred dollars directly into the borrower's bank account, usually within 24 hours as long as the following day is a working business day. Credit challenged applicants do not have to worry about the state of their credit history. These loans are processed without credit scores as a qualification factor. These lenders want a working bank account, proof of employment and a minimum amount of take-home pay. Since there is no collateral to collect if the loan goes into default, a lender will sell the balance off to a collection agency. At this point the bad debt will be another negative on your credit history since collection companies report to the credit bureaus
The main feature of cash advance for businesses is the convenience of its application process. Problems that need urgent funding will be attended to in no time as this type of funding has a higher rate of approval with less waiting time. Whether the application is done online or by actually going to the lender nearest you, response is guaranteed to take just several minutes. Unlike traditional loan requests, no liability from the business owner is necessary. There is no need for you to present application or closing fees, financials or tax returns, and collateral. Having a difficult financial background or a bad credit rating would not even be a hindrance to getting approved as no credit checks are conducted.
Cash advance for businesses, which is often mistaken for a form of loan, is an acquisition of cash which is yet to be made as business sales or profit. Upon approval, an agreement determining the percentage which will be taken from debit and credit card sales and the time to get the advanced money to get fully paid will be drafted. This form of direct payoffs does not only pose as a convenience to the lender but to the busy entrepreneurs as well, eliminating additional tasks to be handled and saving more time.
Upon receiving the contract, read it carefully. Make sure you understand every term and condition specified in the contract. Remember that the business advance is not a loan. Your contract is your only legal safeguard against fraudulent providers. Once you sign and submit your application, business cash advance will be released, usually within one week or less.
No Credit or Collateral at Stake
Merchant cash advance is treated as a purchase or a sales transaction and not a loan. Thus, it does not affect your business credit rating, unlike commercial bank loans that can wreak havoc with your credit report. This also removes the risk of losing collateral, making merchant cash advance an extremely safe funding option for your business
In addition to the benefits it offers you a great source of competitive advantage by allowing you to seize economic opportunities at the earliest. Remember, time is money! If you keep waiting for your loans to pass, then your competitors will march ahead. So don't wait any longer, opt for an MCA and take your business to the new heights it deserves.
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