Today, borrowers have different options of money source. While someone choose loans, the other prefer a merchant cash advance. This option for funding your business has some distinguish features.
A merchant cash advance provides you a lump sum of cash that you have to return paying the advance with a fee. The repayment process requires you to give to your cash provider a definite percentage of your sales. This is done till the whole amount with a fee is repaid.
According to the rules of a definite percentage covered every day, your business will not be destroyed with overpaying. When the sales are low, you also pay little. So, if your business is doing well, you have a chance to return money quickly enough. This type of financing doesn’t demand collateral, so you will not have to sell any of your property.
Bad credit isn’t a problem for a merchant cash advance borrowers. But you need to take into consideration high costs of this money service. So, before applying clarify all the terms and conditions.