A Better Borrowing Option For Retail Merchants? Frequently Asked Questions About Merchant Cash Advances - 1 views

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  #1 gccapitalfunding on 24 Aug 14

   

  For businesses without established credit history, or the ability to meet collateral requirements, it can be exceedingly difficult to find a bank who will lend them money. Yet every business depends on lines of credit and Fast Short Term Business Loans to keep operations going smoothly or to expand at the appropriate times. Even if a loan is acquired, the borrower is under pressure to meet repayment deadlines or face late payment fines or interest hikes. For retailers in particular, this borrowing model is often incompatible with their needs. As an alternative, retailers can consider getting a merchant cash advance. Here are some frequently asked questions regarding merchant cash advances.
  
  How Does It Differ From A Traditional Loan?
  
  Merchant cash advances differ from conventional loans in several ways. For one, repayment is not based on interest, and there are no late fees or other associated costs. Rather, in exchange for an initial lump sum, the debtor allows the creditor to take a small portion of all incoming credit card revenues. The total amount collected will be agreed upon when the two parties enter into contract. It will be somewhat higher than the sum collected by the debtor, representing the cost of convenience.
  
  
  
  What Are The Specific Advantages To Retailers?
  
  This type of borrowing system is ideally suited for retail businesses. In most retail markets, the business cycle experiences a series of ebbs and flows in activity. For many, over 90% of their revenues are collected during the holiday season. They may lose money all year round and only enter the black during the annual shopping frenzy. Because they are not bound by deadlines to pay back the creditors, they do not have to worry about their loan schedule aligning with their sales timing. Retailers can use the up-front money to replenish inventory for the sales season, or expand into new product lines as market demand changes. Also, eligibility determinations are made based on the health of the business and what the creditor expects their future revenues to look like, not on personal credit.
  
  Is It Safe?
  
  Because repayment comes in the form of split sales proceeds and not direct payments made to the creditor at set times, lending institutions are not bound by standard usury laws. As such, there are a number of loan sharks out there using unscrupulous lending practices. To protect yourself, it is important to look into the background of any company you consider working with before entering into an official agreement. Check with the Better Business Bureau to find safe partners, such as GC Capital Funding.
  
  If merchant cash advances sound like a good funding option for your company, you can contact financial institutions like GC Capital Funding that specialize in them. Their website is a good starting point, found at http://www.GCCAPITALFUNDING.com.

   

  <div class="cArrow"> </div><div class="cContentInner">For businesses without established credit history, or the ability to meet collateral requirements, it can be exceedingly difficult to find a bank who will lend them money. Yet every business depends on lines of credit and <a rel="nofollow" href="http://www.gccapitalfunding.com/short-term-fast-business-loans">Fast Short Term Business Loans</a> to keep operations going smoothly or to expand at the appropriate times. Even if a loan is acquired, the borrower is under pressure to meet repayment deadlines or face late payment fines or interest hikes. For retailers in particular, this borrowing model is often incompatible with their needs. As an alternative, retailers can consider getting a merchant cash advance. Here are some frequently asked questions regarding merchant cash advances. <br /> <br /> <b>How Does It Differ From A Traditional Loan?</b> <br /> <br /> Merchant cash advances differ from conventional loans in several ways. For one, repayment is not based on interest, and there are no late fees or other associated costs. Rather, in exchange for an initial lump sum, the debtor allows the creditor to take a small portion of all incoming credit card revenues. The total amount collected will be agreed upon when the two parties enter into contract. It will be somewhat higher than the sum collected by the debtor, representing the cost of convenience. <br /> <br /> <img alt="Fast Short Term Business Loans " src="http://i.imgur.com/g9PU3jg.jpg" style="max-width:100%" /> <br /> <br /> <b>What Are The Specific Advantages To Retailers?</b> <br /> <br /> This type of borrowing system is ideally suited for retail businesses. In most retail markets, the business cycle experiences a series of ebbs and flows in activity. For many, over 90% of their revenues are collected during the holiday season. They may lose money all year round and only enter the black during the annual shopping frenzy. Because they are not bound by deadlines to pay back the creditors, they do not have to worry about their loan schedule aligning with their sales timing. Retailers can use the up-front money to replenish inventory for the sales season, or expand into new product lines as market demand changes. Also, eligibility determinations are made based on the health of the business and what the creditor expects their future revenues to look like, not on personal credit. <br /> <br /> <b>Is It Safe?</b> <br /> <br /> Because repayment comes in the form of split sales proceeds and not direct payments made to the creditor at set times, lending institutions are not bound by standard usury laws. As such, there are a number of loan sharks out there using unscrupulous lending practices. To protect yourself, it is important to look into the background of any company you consider working with before entering into an official agreement. Check with the Better Business Bureau to find safe partners, such as GC Capital Funding. <br /> <br /> If merchant cash advances sound like a good funding option for your company, you can contact financial institutions like GC Capital Funding that specialize in them. Their website is a good starting point, found at <a rel="nofollow" href="http://www.gccapitalfunding.com/">http://www.GCCAPITALFUNDING.com</a>.</div>

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