Dreams and aspirations are vital for growing any business, but if you truly want to achieve success, you need funding. The old adage of "it takes money to make money" is true, and for many aspiring business owners this need for funds during periods of growth and change can be a major stumbling block in getting where they want to be. Fortunately, merchant advance funding can make it possible to get the funds you need without having to go through traditional loan channels.
If you are considering getting funding for your established business through a merchant account cash advance, here are some things you need to know:
- Cash advances are only available for established businesses, meaning you cannot get this form of funding product if you are just getting started. Generally a business must be in place for at least 2 years before getting an advance, but there is some flexibility in this guideline so it is important to discuss your specific situation to determine if you meet the specifications for the advance
- A merchant cash advance is not a traditional loan, but rather an advance on your future earnings. This means there is not a set amount you pay back each month like with a traditional loan. Instead, when you first take out the advance you agree to pay a specific percentage of your credit card earnings each day or month. This means you will likely pay different amounts for each payment, but the percentage always stays the exact same
- Securing a merchant cash advance involves the merchant service evaluating your business and the amount of credit card sales you have had in the last several months. The service uses this information to determine how much of an advance to extend to you and what percentage of these sales to require as payment until your debt is absolved. This could be up to 20 percent of your credit card sales with a minimum volume each month
If you want to find out more about merchant cash advances, the fees and costs associated with this funding product, and if this is the right choice for reinvesting into your business, call AVPS at 1-800-719-9198. Our knowledgeable staff will explain the entire process and help you determine if an advance is the right move to help you achieve your business goals.
