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Merchant cash advance
There are many kinds of businesses that use merchant cash advances. The numbers of businesses choosing this type of financing has been growing steadily since the inception of the merchant loan nearly 10 years ago. The reason most businesses choose to get one is pretty simple; they need working capital for their business and they need it quickly.In addition many of these businesses may have tried to get a business loan from the bank but were either turned down or they were not able to get funded in time to suit their needs.Almost every conceivable type of business can apply for a merchant cash advance. Some of these businesses include(but are not limited to); restaurants, grocery stores, beauty salons, garages, tires stores and franchises just to name a few. What all of these businesses have in common is that they all accept credit cards and do a major portion of their business from credit cards.This is the common factor between all of these businesses. The amount of the loan is figured by taking the monthly averaged amount of credit card sales and multiplying them by a factor that is determined by the lender. Usually this factor is about 1-11/2 times the monthly rate of credit card sales. This then becomes the amount the business is able to qualify for as a merchant cash advance.One of the advantages to this type of business financing is that most businesses qualify.Obviously the heavier a business relies on credit card sales the more likely they are to be able to use this type of financing. There are several advantages to using this type of financing.Some of them are:
Generally there are few qualifications for a merchant cash advance.Typically most merchant cash advance lenders will expect you to:
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