How Does a Business Get Merchant Cash Advances?

1. How Does a Business Get Merchant Cash Advances?

2. Starting a small business is a risk, but one that many people take for various reasons. It could be that you have a product you think people would like or could use. You may be searching for products yourself and find that you have to visit multiple stores or websites to get them all. Wouldn’t it be nice if these product types were all sold in one place?

3. For whatever reason, people take the plunge and start a micro or small business. Some do it with a brick and mortar store, others have only an online presence. Once the business is established and you have customers coming in, you realize that you made a good decision and you are pleased that you are now your own boss. But as any business owner will tell you, there are times when business is slow or a new government regulation increases your expenses.

4. These are unforeseen events. You can’t know that a new regulation will be instituted or your business license will cost more to renew. You may budget to set aside money for these eventualities, but if you are a new business you may not yet have enough. You don’t need much money, perhaps just a few thousand dollars, but if you go to the bank and there is no guarantee they will want to absorb the risk of a small, new business. You may not get the loan. You may be better off contacting a capital funding firm such as Cresthill Capital. Just make sure you look up any Cresthill Capital complaints prior to deciding that it is the best company for your business to turn to.

5. What is a Capital Funding Company?Capital funding companies are private firms that provide Merchant Cash Advances to micro businesses and small businesses. Unlike banks, capital funding companies will deal with businesses that are new even companies that are in business for less than a year. The criterion they use to determine if you are eligible for a loan is different than the criterion a bank uses.

6. For example, Cresthill Capital reviews the receipts of the business. The review period may vary, but for a business that is new, the review period would likely be the receipts since the business’ inception. This gives the funding company a picture of your business. Is your customer base growing? Are all of your products generating income or just a core group of products?

7. They will also look at what you do with the receipts. How much of it goes back into the business? How much of it helps the business expand> This would relate to your marketing practices. If you run an online business do you rely only on purchases or do you take advantage of ad revenue as well? Taking advantage of ad revenue can help you during down periods.

8. How Does it Get Paid Back?Capital funding firms have a number of repayment methods. They work with the business owner, explain the various repayment options, and then together determine what works best for the business. They have flexible repayment plans. For example, it can be a percentage of your gross monthly profits or they can work with your payment processor to divert of percentage of daily receipts to the funding firm. If you need short-term bridge funding a capital funding company is certainly a viable option to investigate.