Unlike traditional loans, business cash advances can give you access to capital without the hassles of lengthy applications and paperwork. The process is designed to be extremely fast and hassle free. An advance for your business is not a loan. The concept of the advance is based on your credit card sales history. You are basically selling your future credit card sales in advance, for a lump sum today. After your business is funded, small deductions are automatically made from your daily credit card receipts.
Because of this you will also not have a monthly repayment but instead, the advance will automatically be deducted from your business credit card sales and it’s typically 5-20% depending on the amount of your advance.
In other words, a business can pay their business cash advance through a percentage of credit card transactions that go through your business. The business cash advance lender will automatically set up a repayment system that withdraws a certain percentage of the business’s credit card sales to repay the advance.
Although this is a new concept, it’s already proven itself to be a very effective to get cash quickly. This method provides a low risk to the lender, a relatively cheap way to get money for the business; it’s incredibly fast and can get you the money you need to sustain and grow your business.
The first and most important information you will need is your credit card processing history. As a minimum you need to be processing major credit cards like Visa and MasterCard for at least 6 months and you must average a minimum of $5,000 worth of transactions a month. (For those who do not accept credit cards there are other options available for you at www.advancefundsnetwork.com )
Businesses may also be required to be in business for a minimum period of time as well. Brand new businesses that haven’t been able to produce a history of credit card transactions that are sufficient to the lender may not qualify for this type of loan. Usually this is 3-6 months in business.
The next requirements will be proof of your monthly income in the form of your credit card processing statements. All you need to do is provide the statements from your credit card processing company and typically you need to provide statements for the past 6 months to give an accurate reflection of your business’ sales history.
This is good for all sorts of businesses. Those that get a lot of their revenue from internet sales really have a hassle getting a traditional loan for their business. This new way allows all sorts of business to expand and to help generate more sales. There are no hidden or late fees. No personal guarantees that could result in loss in equity or personal collateral.
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