Should Merchants Use A Cash Advance For Small Business Funding?

As a rule, business owners look for credit lines or bank loans to get funds for their financial growth. Business loans are among the most popular resources available. What about a cash advance? Merchant cash advances are becoming more and more popular among business owners. This is especially true of startups and micro-businesses.

 

Merchant Cash Advance Is on the Rise

Based on a study by the Federal Reserve Bank, entrepreneurs who are likely to choose lines of credit and loans count for roughly 52% and 57% of the overall popularity. Cash advances are also on the rise, capturing the market at a respectable 7%.

 

The concept of cash advances differs from that of the usual loans. However, both require timely repayment of the money. The provider offers a Cash Advance against prospective future sales and can draw out cash from the credit card transactions of your business in future. In this case, payments should be made on a weekly or daily basis. As for loans, repayment is made on the basis of a percentage called “holdback”, due to the credit card transactions.

 

To get a Cash Advance, merchants should turn to a reputable business lending company like First American Merchant. FAM boasts an A+ rating with the BBB. FAM can get merchants funded within 5-10 business days. The Merchant Cash Advance Program is FAM’s most popular form of business. With FAM, virtually any type of business can get access to fast working capital. Bad credit is not a problem.

 

Business Loans vs Merchant Cash Advances

One major difference between loans and cash advances is the calculation of interest. Cash advances charge them on the total amount, at once. As for loans, the figure of interest changes as the principal is paid off each month. So cash advances serve as short-term loans.

 

Another factor to focus on is the time. Cash advances offered by most providers should be repaid within 6 months – 2 years. The net amount, including interest, will be the same, regardless of the payment timeline. The great thing about this is the flexibility offered. So cash advances can be ideal for seasonal businesses as it is possible to pay off based on the cash in hand.

 

As for funding speed, unlike bank loans, online providers offer the advantage of speed and minimum of paperwork.

 

Limit is another factor to take into account. Cash advances can provide up to $250.000 or a bit more. SBA-backed (US Small Business Administration) bank loans can cater up to $5 million.

 

As for requirements, bad credit history is not a prerequisite for online providers, which cannot be said about traditional banks.

 

Finally, flexibility – unlike Cash Advance providers, banks generally prefer to be in closer proximity with the loan owner. A Merchant Cash Advance can be a perfect option to choose in case a business loan is absent or denied.

 

 

 

Car Loan For Bad Credit

You need a car but have not got the cash. Bottom line, you need a vehicle to get you from point A to point B. Problem is, you have bad credit. What lender in their right mind would give you a loan, especially with your bad credit score?

Well, there is hope. You can get a car loan for bad credit. The best part is that it is quite easy to get a bad credit loan. You can get a payday loan to get the car that you want.

A payday loan is just as the name implies. It is a loan that you get, then repay it on your next payday. In just three easy steps, you can have cash in your hand. In just three easy steps, you can have a car loan for bad credit. It is almost effortless.

The first thing that you will have to do is fill out brief application online. It will ask for your information, such as your address, phone number, employer and how much money you make.

They will also often ask for your bank information. You can fill the application out on line and submit it immediately. The service will review your information and match you to lenders who can help you. They will look at your application and determine if you are a good match.

Once you have been matched with a lender or lenders, you can click over to their website and review the loan details. You will select the amount that you need (the maximum amount that you are allowed to borrow is often based on your income).

You will then just need to provide any additional qualifying information that they might need. You may be required to fax in your check stub, bank statement or lease agreement. Some companies may call your employer and call your bank to verify your information.

Payday loans do carry interest or fees and they vary by company, by the amount of the loan and by the terms of the loan. Once your loan is approved, you will be given documentation that details the amount of your loan, the fees charges and the repay date. Keep these for your records.

Once your loan is approved, the money will be electronically deposited into your bank account. This can take up to 48 hours, although many lenders will deposit the funds within a 24 hour period sometimes within a couple of hours.

Some will even do it immediately. When you communicate with the lender, you may want to ask what the turnaround is from application approval to deposit of funds.

On the payday following your loan disbursement, the repay amount (loan plus interest) will automatically be debited from your bank account. You don’t have to do a thing, it is all done for you. If you want to borrow more money at that time, most lenders will allow you to turn around and borrow cash again.

A car loan for bad credit is not a scam or fantasy. It is very real. You can get a loan, a payday loan, regardless of your credit score or credit history. Then all you have to do is go pick out your new car.

The best way to find out is to get a free online guaranteed car loan quotation so you can see what you will be paying before you take out the loan, that way you can decide if it is for you or not.

car loan for bad credit can be affordable and a breath of fresh air you just need to navigate to the reliable loan companies so that you pay a fair amount of interest for any car loan that you take out.

Payday Loans For Bad Credit – A Solution For Good People With Urgent Financial Matters

Most people have run into a financial situation that requires urgent attention at one time or another. It might be an emergency car repair or a past due electric bill. Many of these people do not have a savings to draw from and do not have a favorable credit, making the options available to resolve financial emergencies very slim. Payday loans for bad credit can be a practical consideration for people facing this predicament.

The advertising slogan “Bad Credit? No Problem!” is plastered on almost every cash advance site on the web. The reason for that is… its true! “No credit check” is one thing that makes payday loans so tempting to so many people. You can put some much needed cash in your pocket and your creditors will never know, unless you default on the loan. Most cash advance lenders don’t even pull a credit report during the approval process. They consider stable employment and a verifiable income your credit.

A payday loan is a “cash advance” on your next paycheck, so in a sense it eliminates the need for a credit check to verify that you pay your bills on time. You’re obviously experiencing some form of financial difficulty or you would not be considering this type of short term loan. So, the difficult financial background that would be reflected on your credit report does not become a factor. Many lenders require payroll direct deposit for approval because it allows them to electronically retrieve their loan payment with more certainty and less chance of default.

The best part about getting a payday loan with no credit check is that you will not be punished for having financial issues in the past. That is, the same two people applying for the same loan amount will be charged the same rate regardless of their credit history. At some point in our lives, most of us have heard, “if your credit score was higher we could offer you a lower rate on your loan”. Those words will never be spoken when applying for an advance in your pay. Since a cash advance is meant for emergency money situations as opposed to long term loan payments, some of the factors that come into play for other types of loans are not even considered during the payday loan approval process.

Although your credit report is not usually taken into consideration during the approval stage of your cash advance, it may be factor if you default on your payday loan. Many payday loan companies report delinquencies to the credit bureaus. This reporting may lead to negative consequences on the accounts you have that take your credit score into consideration. The delinquent payday loan will usually be reported as “in collections,” or as an unrecoverable amount, and can stay on your credit report for seven years.

It’s important to be smart and responsible when obtaining a cash advance. Only borrow what you absolutely need and budget your money so repayment will not put you further behind. Try to leave a cushion for your daily expenses on the week your loan comes due. Many people are already facing dire straits when applying for a payday loan, but you cannot get caught up in the ease of getting the loan. Taking out multiple payday loans or borrowing a higher amount than you actually need simply because it is available to you is unwise. You must be conscientious about your budget and do your best to make good use of your cash advance without putting yourself in a worse financial position.

Most people encounter a financial emergency at one time or another and many of these people have had a difficult financial history. That much is understood in the short term lending business. A good person can have bad credit and still have the need for a payday loan to help them pay an overdue electricity bill. That is why short term lending companies offer you a quick and easy cash advance with no credit checks. In return for that convenience, you agree to pay the loan on your next pay date. It really is that simple if you borrow only what you can afford to payback.