Business needs cash in order to flourish and grow. Small businesses need funds even more to go to the next level but they also face problems in sourcing finances. If they approach banks they must furnish collateral and wait for a couple of months for the approval process. The other option for small business owners and professionals, and this includes restaurant owners, the corner mum and dad shop, service providers, traders, professionals like doctors and industry owners, is to go for unsecured loans.
Not everyone in the small business category has a healthy bottom line. Some may even have fallen on bad times and due to one reason or another their credit score dips to 500 or below in which case they may no longer be eligible for merchant accounts or regular loans from banks. Business loans for bad credit business owners come to their rescue. A loan for bad credit can not only help arrest the downward spiral but it can also help a businessman get back on his feet and progress. How is this possible?
In the first place, a business owner with bad credit would need to set up a merchant account and offer credit card processing in order to increase customer base. Finding loans for bad credit times can be difficult and even if one does find a lender he may impose stiff terms, charge a high rate of interest and sell or lease card processing equipment at a high cost that keeps the borrower forever in a debt trap. However, not all lenders for bad credit businesses are like that. Wscapnow.com is one of the more considerate lenders that help bad credit business owners set up merchant accounts and obtain card processing facilities at the least initial cost and running cost. A merchant with bad credit must search for and find such lenders.
Setting up a merchant account and card processing facilities is one part of the story. Such businesses may also need a cash injection. Since regular channels are virtually closed they would find it advisable to access unsecured loans although the APR may be a bit higher but once the ball is rolling and funds flow in they can manage repayments and still have cash left over.
Merchant cash advance or MCA, as it is known, is so easy that any businessman can fall into a trap if he is not smart enough. If one knows how and finds the right source, it can be a tool for growth but if one ends up with a crooked lender, the borrower lands in a debt trap. Here are five tips to keep in mind when one considers merchant cash advance.
Merchant cash advance loans are unsecured and this means there are hawks out there who milk a client for all he is worth. Avoid such lenders who insist on supplemental fees and application fees. Avoid lenders who charge a high rate of interest that can be as high as 50% APR. Select only respected, well-known lenders like wscapnow.com whose dealings are transparent.
Check contract terms carefully and check the lender online
Just because money is needed badly it does not mean a merchant should settle for the first MCA he comes across. It is in his interest to research the lender and find out his reputation online through testimonials. The contract or agreement too needs to be examined in detail before signing because there may be hidden clauses that ultimately result in the borrower paying more than he expected. Before merchants apply for merchant cash advance they should check the offer terms and make sure they qualify. Once they do, then it is better to initiate the online process for fast process and disbursal. If there are doubts, the merchant should always call, get clarifications and get them in writing. It is wise to not rely on verbal assurances and be very specific about each clause of the contract.
Plan a strategy before seeking MCA
Just because MCA is available so easily it does not mean a merchant can get the money and spend it on vacations or to pay college fees. While lenders typically do not ask the purpose for which a loan is sought, it is for the borrower to have a plan in place to make good use of the money to grow their revenues. This way they see an increase in revenues and repayment is no problem even if it is tied to credit card sales. In fact, if sales increase the amount is repaid in a shorter time and the merchant can go in for another loan to grow his business.
Borrow least and avoid the debt trap
MCAs can be deadly debt traps for businessmen who opt for such funding without much planning. They may borrow to repay a debt and fall into the debt trap. It is wiser to plan for best use of funds and borrow the least amount so that daily cash flow is not affected. Remember, repayment of MCA is usually linked to daily credit card sales. If one borrows more, the daily outgo is more.
Compare rates and get all clarifications
It takes time and effort but it is worth it as one will get the lowest rate and make sure there are no unpleasant surprises.
WSCapnow small business loans target the entrepreneur who wishes to take the next big leap or the small business owner who is faced with temporary setbacks. Any running small business can avail of small business finance through Water Street Capital and be assured of fast financing on soft terms.
Know more: http://www.wscapnow.com/small-business-loans/
Small businesses are alive and flourishing. One of the reasons is the rise of alternative funding sources that help them get funds easily, with less hassle and with no need to furnish collateral. There are small business loans and there are unsecured loans for small businesses and then there are MCA.
What is a merchant cash advance?
It is an alternative method of finance for small businesses. It is primarily aimed at retailers, pharmacies, professionals, small manufacturers, restaurant owners and similar businesses that may face the occasional cash crunch. It is not for startups. Only those in business for a year or more with a turnover of $ 10000 in credit card sales are eligible. The only requirement is proof of identity, residence, ownership of business and bank statements and funds are made available in less than a week. Repayment is usually tied to credit card sales on a daily basis. The factor rate is rather high but bearable.
Why should one apply for merchant cash advance?
As any small business owners know there are several occasions when cash is in short supply and one must get funds immediately. This happens when employee salaries are falling due or when vendors need to be paid while incoming funds may be delayed. Accessing merchant cash advance is the best option to get cash immediately and meet one’s commitment. It is better than having to seek loans from friends or relatives and remain obligated to them.
Retailers and small businesses may wish to take advantage of festive seasons. In such cases launching a marketing campaign will net them more customers and generate more revenue. MCA funding gets them the money they need to launch campaigns, increase their market visibility and presence and garner a good share. Extra earnings always help repay the loan.
A businessman who stays content with his business is likely to stagnate and suffer. The expansion should always be an ongoing process for small businesses to grow into larger ones. Cash advances are the best way to finance such expansion activities. A businessman can move to larger premises, refurbish and renovate his existing premises, buy new equipment and generally increase the quantum of business. Expansion of activities will help him serve customers better and faster and earn their loyalty as well as recommendations.
It may not seem like a good idea to go into debt by obtaining a cash advance in order to pay off a debt but debts can be restructured. If one is in a debt situation where the interest rate is killing then getting a loan at a much lower rate and on more favorable terms to pay off that debt is a wise decision.
There is no doubt that cash advance business is growing and providers like wscapnow.com are offering the best terms. Small businesses that would have gone under have survived and prospered. Businesses that would have stagnated have expanded and grown, thanks to small injections of cash at the right time.
A small business owner may be happy at the way his enterprise is operating. It is running along smoothly with no humps or dips in revenues. Should be continuing it is likely that at some point competition will overtake him. The right thing to do is to expand and grow. For this funding is necessary. Instead of dipping into his cash reserves or mortgaging his house or assets, a risky proposition, by the way, it is better he considers alternatives that will get him much needed cash to expand and grow his business.
One can opt for secured small business loans or for unsecured business loans. In the case of the former, the borrower must furnish collateral and enjoy a lower rate of interest. In the case of the latter, he does not need to furnish any collateral and pays a higher rate of interest. If his business is profitable he can generate extra revenues and pay off installments from earnings.
The process of obtaining a low-interest rate business loan is not easy. One has to put together a set of documents, something like a project report and then approach regular lenders like banks. It takes many visits and quite some time for the papers to be processed. Small business owners are so busy with their routines that they can hardly spare time for visits to the bank or hire a legal expert to be by their side.
The better alternative for business owners who are hard pressed for time is to apply for a small business loan online. It is so easy and quick. A business owner can initiate the process using his desktop or laptop computer. The first step is to fill in the online form for small business funding on the website of wscapnow.com and submit a few details. In a couple of days, he receives a call from the lender and he submits scanned copies of a few documents. The only documents he needs to submit are already in his possession. These are bank statements for the past six months, proof of identity, residence, and ownership of business and that’s that. He does not need to prepare a project report or any mortgage papers or guarantor. The loan for small businesses is unsecured and lenders assess his integrity, advancing amounts based on their assessment. In less than a week he can get funds deposited in his account and finance his growth or expansion program.
The best thing about loans for small business from wscapnow is that even those with marginal or bad credit are eligible. The only requirement is that the business should be up and running and should have a minimum turnover of at least $ 10000. With a proper plan, he can use the funds for increased revenue generation, repay well ahead of time and grow as well as improve credit scores. Even those with excellent credit will find this line of finance most suited for rapid expansion plans.
Apply now to water street capital. Just fill in the form online and initiate the process or you can check the PDF form. For more details contact us, email us firstname.lastname@example.org or call us: +1-800-589-4161.
Blog source: http://www.wscapnow.com/blog/5-key-steps-to-get-a-small-business-loan/
It is a fact of life that those who need funds find it hardest to get their hands on cash when needed. Businessmen with poor credit or bad credit are the hardest hit. Lenders simply show no consideration for such struggling entrepreneurs who are finding it hard to manage cash flows. Such entrepreneurs in Canada may not have had the time to establish a good credit history or even a personal credit score that will put them in “good books” of lenders. Bad credit, to lenders, is a sign that borrowers are not in a position to repay loans.
When traditional avenues of funding are closed for businesses with bad credit there is still another option open. This is bad credit small business loans from providers who really care for entrepreneurs and want to get them back on their feet. Unlike merchant cash advances, bad credit business loan repayment is not tied to daily credit card sales. This widens the scope because not all businesses have credit card sales. Repayment may be on a fixed monthly basis with fixed tenure for repayment. Bad credit small business loans in Canada is easy to obtain from suitable providers.
Anyone who is mired in financial difficulties and with a poor credit rating knows how difficult it is to obtain finance that will help them keep their business operational and even grow. Such business loans for small businesses are ideal. Applicants need to submit only minimum documentation for fast approval. Terms are easy in that no mortgage or guarantee is required for business loans. Importantly, loans repayment may be spread out over a year or even more thus easing the financial burden. The result is that a cash stifled business gets the necessary infusion of funds to help it overcome temporary difficulties. It can grow and reverse its situation.
A credit rating of only 300 is considered poor while 900 is the highest with 650 being the right score for businesses to be eligible for standard sources of funding. Not all businesses have this score and even if they have a score of 500, they are considered risky propositions when it comes to lending. Bad credit loan providers take a look at all factors that influence ratings and make a decision, usually in favor of the borrower, fixing the rate of interest according to the analysis of their financial position and repayment tenure. The APR may be a little on the higher side but if a business owner can use the funds to generate profits that exceed repayments and still leave him with spare cash, it is better than not having any funds at all.
The important thing is survival. Infusion of cash in the form of business loans help businesses stay alive and, with guidance from experts from the loan providers, get back on track. Once they do, the same loan providers can keep on providing more funds in various ways to help the businessman grow and expand. The higher cost is offset by rapid growth and increased revenues.
For more details contact us, email us email@example.com or call us: +1-800-589-4161.
Content Source: http://www.wscapnow.com/
Given the advances and facilities available in merchant cash advances, it is a wonder that these are not more popular than they ought to be. In order to be eligible, a merchant such as a retailer, a professional, a small business owner, a hotel or restaurant owner or a manufacturer needs to be in business for at least a year and must have a turnover of $10000. Documentation is a minimum, restricted to proof of identity, proof of address, proof of ownership of business and bank statements. Borrowers need not furnish a guarantor or mortgage property to get cash up to $ 200000 in as little as 4 to 5 days. Cash may be needed at any time and a merchant must have access to such sources of funds.
The business scenario is changing these days. The economy is improving and small business owners across the US are flourishing. There are more opportunities for growth for savvy businessmen and everyone knows that cash is the lifeblood of business. Merchant cash advance loans are one of the easiest sources of fast cash that a smart businessman can leverage to take his business up to the next level. Even if a businessman is doing well, he can always think of expansion by adding new types of equipment or modernizing facilities. He can buy inventory at low cost or launch ad campaigns. Dipping into existing cash flow is not advisable whereas MCA gives access to funds that can allow these expansion activities. This is just one reason why merchant cash advance loan should be on the list of source of funds.
There are other compelling reasons as well to have a reliable and trusted source of MCA. There is no guarantee that if a business is doing well these days it may not be in difficulties tomorrow. This can be due to a slowdown in business while liabilities remain the same. A natural disaster may put a halt to business or be a source of additional expenses. One may need to hire new employees to boost business activities. Cash flow may be affected but one must pay salaries on time. All these are reasons enough to convince any business owner that a line of finance must always be kept open. In all such cases, one needs cash and that too in a short time. It is simply not worthwhile to go through the regular channels and wait months by which time it will be too late.
Talking about regular channels of financing, it is a trend that banks are not quite as easygoing as they used to be in the past. They are stricter in evaluating borrowers and do ask for a lot of documentation as well as mortgage and guarantees. Even getting a mortgage is difficult due to changing regulations. Even if a borrower qualifies he may have to wait up to 50 days for approval and sanction. MCA allows business owners to get cash fast and when needed, no questions asked. Provided it is used for the right purpose, MCA does provide help when needed and helps businessmen stay afloat or even surge ahead.
It is easy to apply for Water Street Capital’s best merchant cash advance. Just fill in the form online and initiate the process. Our rep will take it from there.
Blog source: http://www.wscapnow.com/blog/why-merchant-cash-advance-loans-are-suitable-choice-in-these-days/