Poor or nonexistent credit history is the thorn in many a new entrepreneur’s side. It can be frustrating enough starting a brand-new business from scratch, but having a credit history that does not shine makes things even more difficult. Without a strong credit history, acquiring a loan is not easy.
The good news is that there is an alternative option for you: the merchant cash advance, which gives a small business a fixed sum of money that is then repaid through a percentage of daily sales. Depending on your circumstances, you may really want to give merchant cash advances a try. Here’s why:
- Flexible Repayment: You pay according to how well your business is doing. If you had a particularly bad week with sales, you don’t have to pay back as much that week. If you have a great week, you can pay back a little more. The repayment schedule adheres to your revenue.
- Immediate Cash: Unlike those of a bank loan, the paperwork for a merchant cash advance is limited, the application process is minimal, and the cash arrives quickly.
- No Collateral Required: Many banks require collateral to ensure that they will not be left in the lurch if you are unable to repay the money. Merchant cash advance companies generally do not need or require collateral.
This article was originally published by Biz2Credit
Published: November 21, 2014