Do You Need a Business Loan US?
If you’re a business owner in America and you are looking for fresh capital which may be used in order to finance a growing company, you should definitely consider applying for a business loan US.
When you’re approved for this type of loan, you’ll be able to access a set amount of credit, which may be utilized in order to pay for an array of expenses, including expansions to your business facilities and new equipment, such as vehicles or manufacturing machines.
The best business loan US will feature flexible terms and conditions.
Today, we’d like to share more information about US business loans. There are different forms of loans to choose from and one of them is bound to be right for you.
What is a Merchant Cash Advance?
One borrowing option for USA business owners is the merchant cash advance loan. This financial service gives approved businesses access to lump-sum payments in exchange for set percentages of future debit card and credit card sales.
Most lenders who grant these loans offer between five thousand and one hundred thousand dollars. How much money you will qualify for will depend on your monthly debit card and credit card sales, as well as other factors.
This type of merchant cash advance financing is something that you’ll be able to apply for online. Most lenders have apps on their home pages which allow business owners just like you to find out exactly how much they will qualify for. In some cases, it’s possible to access approval and get the funds that you need within twenty-four to forty-eight hours.
Pros and Cons of Merchant Cash Advance Loans
The best merchant cash advance loan will have a lot of pros and relatively few drawbacks. However, every type of financial service has some “cons”. In terms of pros, you won’t need to make a monthly payment which is fixed, as you would if you got a traditional business loan from a bank. In addition, you won’t need to worry about interest payments or repayment dates.
As well, you won’t need to offer collateral. If your business doesn’t make it and you haven’t paid off your merchant cash advance, your assets won’t be taken away. They would be if you got a typical business loan from a financial institution! This lack of liability in the event that your business fails before repayment is complete is definitely a big advantage!
When you select a merchant cash advance, repayment will be structured and automatic. It will be contingent on your credit card sales. This means that you’ll never have to worry about late fees which are charged for missed payments. As well, you’ll get all of your loan funds right away. In addition, this type of financial service won’t impair the cash flow of your business.
Slow sales one month will mean less money paid to the lender! It’s all about paying out a percentage of sales, so what you pay will be scaled to what your business earns. You won’t even need to worry about a minimum payment!
Lastly, these types of cash advances don’t require a lot of paperwork. There is little red tape to wade through and this is a good thing.
Now, let’s talk about the downside…
This type of financial service will cost you a bit more in the long run, versus a bank loan. With a merchant cash advance, you’re not really getting a loan. Instead, lenders perform purchasing and selling of future income of borrowers. For this reason, they aren’t hindered by the usual rules about interest rates. A typical annual percentage rate for merchant cash advances is sixty to two hundred percent.
You’ll pay a percentage monthly on your owed balance, rather than the complete loan amount. You’ll also pay a fixed rate which covers the lender’s processing fee for your merchant cash advance. This may be around six grand for a twenty thousand dollar advance.
As well, when you choose this form of loan, you will probably need to keep your credit card processor the same until repayment is complete. As well, you may be penalized for encouraging your clients to purchase with cash, instead of credit cards. This practice may be considered a breach of your merchant cash advance contract.
Merchant financing companies aggressively seek out merchant cash advance leads which help them to become or stay profitable. They also strive to provide exceptional financial services and customer service, with a mind to earning positive merchant cash advance reviews.
Merchant cash advance rates will vary. If you’re interested in this type of financial service, you should definitely compare at least four or five lenders and their rates, terms and conditions before you decide where to apply.
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Is a Bank Loan Better for You?
If you have a lot of collateral, you may not have a problem getting a traditional bank loan. However, you should be aware that the approval process for this sort of loan is typically long-winded. In other words, you’re not going to get approved and get your cash within 24 to 48 hours. As well, you’ll need to pay interest and you’ll definitely be liable if your business fails before you repay the loan. The bank will take your assets if this happens.
Now that we’ve talked about options for a business loan US, why not shop around for a merchant cash advance today? It will be the key to getting the fresh capital that your business needs.