Merchant Cash Advance Loan is a quick and best suited option to the small businesses which have their major transaction through credit card purchase. Merchant Cash Advance provider allows you to take a certain fixed advance amount of cash depending on the monthly revenue of the prospective or ongoing business. The borrower has to pay back that advance, plus a fee, as a portion of the daily credit card sales, until the advance and fee are paid off.
This arrangement of paying off the loan in portion has some good advantages for the small business owners. First of all this gives a quick access as one do not have to qualify for the cumbersome bank obligations. Apart from this the payment that is made to the merchant cash advance company fluctuates with the routine income. Which means it gives suppleness to the small business owner during the slow seasons to manage the cash flow
In order to calculate the total pay back from the Cash advance the MCA provider assigns a factor rate to the advance that is given. The total amount which the borrower has today back can be easily calculated by multiplying the factor rate by the amount given as advance. Factor rates generally range from 1.14 to 1.44. The percentage of your credit card sales which the Merchant cash advance provider will take from the borrower is called the withholding amount. This has to be deducted until the full amount has been repaid. An average withholding amount could be around 15%, it can also be as low as 5% and as high as 40%. In most cases advances are paid back in full in 6 – 9 months.
The advance borrowers need to meet a certain criteria to apply for small business cash advance. These criteria may vary from business to business as well as the lenders. The borrower has to prove his years in the business, future extension plans and a data of monthly credit card transactions. Businesses now days gravitate to this type of financing because good credit is often not a requirement.
Inspirecs.com has been Generating Double Screened Live Motivated Merchant Cash Advance Prospects since over a decade. With a force of excellent marketing guys we are not afraid in claiming ourselves as the market leaders for garden fresh live transfers. Our expertise about the whole process we guarantee more educated prospective clients getting transferred to our participating lead buyers.
If you are one of the Merchant Cash Advance/ Business Cash Advance companies or an Independent contractor in need of Live Motivated Prospects for Merchant Cash Advance or Business Cash Advance feel free to call one of our sales reps at 1-800-986-9315 and hit 1 and we would be happy to answer any and every question that you may have.