Introduction

When you are planning to take your business to the next level and your credit scores are low, the financing companies are not much help. For giving you a way out of trouble, we at Garrtech Funding present you with the merchant cash advance. The merchant cash advance can be understood as a business cash advance. When you want to take your business to the next level, but your credit score and business history is not strong enough for you to obtain a loan, the Garrtech Funding loans you a merchant cash advance. It acts as a short-term financing tool and is a great source of merchant capital. Other than that some basic criteria for the merchant cash advance include - annual revenue of $100,000, credit score of 600 and time span of business to be 6 months. In this manner you do not have to worry about your business being too new. You can apply for merchant capital through Garrtech Funding and take your business to the next level without being stressed about the complications of commercial loan. The advantage with applying for a merchant cash advance instead of a regular loan is the repayment mode. With a regular loan, you have to pay a fixed amount back at the starting of the month, this amount is not dependent on your financial situation. With merchant capital, the amount of money paid back is dependent on the sales that you made in a particular month. It is a great aid for any small business that is in the starting state and not stable enough to apply for a commercial loan. Getting your funds through merchant cash advance is a guarantee irrespective of your credit score or the age of your company. You may contact us for more details about merchant cash advance.

How to decide whether a merchant cash advance is worth it?

On one side you will find that the repayment of merchant cash advance takes up an amount of your daily cash flow which might seem overwhelming at times, but on the other side, it is also true that when your sales are slower, your repayment is low. Hence it is quite different from traditional term loans wherein you have to make the repayments despite your business financials, on time or you pay a late fee. Hence, it is up to you to decide which type of merchant loan is suitable for you.Another factor that should be considered while taking the decision is the repayment term. Usually, it is between 8 to 9 months. The larger percentage of credit card sales you offer your lender, the quicker, the loan is repaid.

Fee Structure

The first thing to note is that merchant cash advance comes with a factor rate in place of an interest rate.

Merchant Cash Advance or MCA is the type of business cash advance that does not require any collateral for getting the finance. Also, the best part about this type of financing is that you need not worry about a bad credit score, as it does not primarily depend on it.

Characteristics ·  It is one of the fastest access to funds · It has a simplified approval process ·  Bad credit does not affect the process of approval · It can be utilized for a wide range of business activities Turn Downs · It has higher charges of repayment in comparison to conventional loans ·The flexibility is less in case of changing merchant service providers ·  It is characterized by daily deduction of credit card receipts which might impact the cash flow

Basics

Extra capital is the need for every business. Taking the approach of applying for traditional loans takes up a lot of time and effort along with a heap of paperwork. In business, opportunities come suddenly and it needs to be taken up fast otherwise you lose the chance of business growth and revenue generation. This is where merchant cash advance steps in. We can assist you through the process for gaining the same.It is basically an advance amount of money your lender provides you in return for an agreement to pay back a certain percentage of per day credit card sales. You can have the funds within a day or two with minimal paperwork but do keep in mind that it is probably one of costliest loan options. Use your research and judgment before applying. Other characteristics of the merchant cash advance include  Maximum loan amount ranges from $2,500 to $250,000 · Repayment is channelized through deduction from merchant account daily ·   Factor fee is in the range of 1.14 to 1.18 ·Time of funding is within a week.The factor rates range from 1.14 to 1.48 which when multiplied by the loan amount gives the total amount of repayment. When the figure is converted to APR, the rates initiate from 15% and can go up to triple digits. One thing needs to be kept in mind that you need to carefully calculate the interest rate and repayment amount. The interest rates may be deceiving sometimes. Last points of advice are that if you are confident that you can pay back the repayment amount fast in an effective manner then your cash flow would not be harmed. Also, to reach us out to know whether you qualify for other types of loans.