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Merchant Cash Advances soar in bad economy
A recent study shows that as the credit environment has increased restrictions, more business owners are turning to merchant cash advances.
In this study of 1,000 small business owners nationwide, 70% cited trouble gaining sufficient funds through bank loans. Of this majority, 95% stated that they have either used, or seriously considering using merchant cash advances to sustain business practices. trinitymerchantcapital.com offers entrepreneurs a lump sum in cash which is payable in the future through the business’ sales. Companies that can greatly benefit from this program are retail, restaurant and service-oriented companies that have good credit card sales.
Most often, these companies fail to qualify for loans due to poor credit or because they cannot offer collateral. The slow economy and the past history of loan defaults fresh in the minds of many banks have led to an increase in the restrictions required to receive a loan. In such a case, Trinitymerchantcapital.com can provide a usable alternative.
Not bound by regular laws
Because merchant cash advances are not loans, and are the purchase and sale of future income, merchants are not bound by the laws that are standard with regular lenders. This means that there is no requirement of regular fixed payments and instead, they set a percentage of the business’ daily credit card sales until the advance and premium has been fully recovered. This usually takes less than 12 months.
The study showed that the number one reason business owners found cash advances so appealing, is that the required payments are directly proportionate with their cash flow, so they are able to pay less when their sales are slow. In this style of cash advancement, there is no due date and no fixed payment required of the merchant.