It is possible for every business to encounter a shortage on funds once in a while in our career lifetime. It will become much worse if you need a capital to pay off an emergency expense. Such expenses may be any of the following incidents such as when it is time to pay your suppliers, the need to stock up for goods and lack of money to cover your employees’ salaries. Besides that, you probably will meet up with due date for your real estate leasing or loan repayment too.
What if there is an excellent opportunity presented right in front of you and you need to act quickly? Without the money, you will lose the opportunity and applying for a bank loan is what you have in mind. Think again, business loan requires a lot of documents and paperwork as well as lengthy and troublesome application process. In addition, you will also have to wait for weeks or months to get their answer. In some unfortunate cases, by the time the loan has been approved, you have already missed the golden opportunity.
People with perfect credit history should have no problem on getting a bank loan, but that is not the case for people with poor credit score. Not only you need collateral, everything from every aspect that is related personally to you will be brought into determination for your approval. Anyhow, you will still need to settle all your financial obligations right away so you will not have to face bankruptcy or losing your property and real estate. So what other alternative do you have to get a capital other than opting for a bank loan?
This is when business entrepreneurs will want to turn into private investors. They offer a kind of loan called merchant cash advance and their service is unique in its own way. Unlike traditional a business loan, cash advance providers will first purchase a part of your future credit card at a lower rate. Then, your repayment will be automatically charged daily from your credit card depending on your sales. For instance, if your credit card sales are low, you’ll be charge less and vice versa. Best of all, they qualify you by your business sales history and not credit score, even if you have no collateral.