There are many ways to obtain a cash advance for any business owner who believes they have almost exhausted their lines of traditional credit. One of the most popular ways of obtaining a little extra cash for any business is to offset their future credit and debit card sales in a process known as a merchant advance. This form of advance is the perfect option for businesses that obtain much of their sales through credit and debit sales.
How an Advance Works
If a company is looking for a little extra cash to tide them over a shortfall of when their cash flow is tight, an advance from a merchant is a good option to explore. This type if an advance is not obtained from a traditional bank, but is offered by a credit card processing company that has experience of working with the company. The specific amount of the advance is determined as part of the deal between the processing company and the business with the common amount of funding offered now expected to hit between 50 and 70 percent.
Not Deducting a Lumpsum
One of the most important aspects of a merchant advance is the fact the funds provided to the business are not repaid as a lump sum to make sure the company has a constant flow of cash. Instead, a percentage of each credit card sale processed is withheld by the processor until the advance is repaid in full. Contact Rose Capital Funding to learn more about a merchant advance.
