Getting Merchant Loans With Bad Credit – Merchant Business

For businesses that have bad credit and are trying to get a loan, there is good news.There is a way to fund your business without having to go through all the rigorous requirements needed to get a bank loan. It is called a merchant loan (or merchant cash advance); it is a fast, easy way to get funding without the need for collateral and you can do so with less than perfect credit.How does a merchant loan work?Applying for a bank loan can be a stressful, time consuming task. They generally require a business plan, several months’ worth of financial records and collateral. After submitting your documents, the bank then begins the process of pouring over your records, checking facts and contacting your referrals. This process generally takes between a couple weeks to two months or more. It is not uncommon for a business that is doing well to be turned down because of discrepancies on their credit.The process of getting a merchant loan is much simpler; all you need to do is fill out a simple two page form and provide about 4-6 months of your business merchant statements. They do the rest.It is not uncommon for a business to get approved in 1 day and get cash deposited into their account in less than a week.While banks focus on your credit history; a merchant loan provider looks at your proven record of credit card sales.How to qualify for a merchant cash advanceAlmost any business can qualify for a merchant cash advance. All that most providers require for you to qualify is;
You must be the business owner and to have been in business for a least 6 months.
Your business must accept Visa and MasterCard.
Your business must process at least $2,500 in Visa/MasterCard sales each month. How much does my business qualify for?The amount of money you qualify for depends on your businesses sales. Generally; they will advance your business 2 to 3 times the amount of your monthly credit card sales. So if your business processes $10K; you will be funded $20K to $30K.How do I pay back the merchant loan?One of the unique features of a cash advance is that it uses your credit card processor to automatically deduct a fixed percentage of your daily credit card sales until your cash advance is paid back. They usually set it up so that you are paid back within 6 to 9 months.Because they use a percentage of your credit card sales; the amount you pay back changes from day to day. This creates a flexible payback schedule that works with the natural flow of your business. Meaning; you pay back less on slow days and more when it is busier.What happens if I default on the cash advance?A cash advance provider works closely with the business owner to establish a merchant loan amount and payment schedule that does not put too much burden on the business owner. The success of your business is in the best interest of everybody.If in the event your business defaults on the payback; it is usually because the business has failed. Nobody wants that to happen. When it does; nobody wins.Merchant loan providers are aware of that risk going in to the deal. Most providers offer these cash advances without collateral. That means that if you do default; they cannot come after your personal assets.In today’s economy it is becoming increasingly difficult to get a loan from the bank, even if you have good credit. They simply aren’t loaning money like they used to.It is always in your best interest to keep your options open when it comes to your business. I invite you to use the following link to lean how merchant loans can help your business prosper in difficult times.

High Volume Merchant Account – Is It Worth To Have One? – Merchant Business

In our world today where internet is highly popular, a credit card processing is a must for business owners who want to stay in the market and stay competitive. Global merchant account is essential and it can be said that without this one can’t thrive in e-commerce. Unfortunately there are businesses that are categorized to be high risks. This is due to several reasons like fraud, high sales volume, and charge backs. High risk businesses may find it hard to avail of merchant account. Aside from increase in profits, having a global merchant account would make it easier for customers.There are businesses that are anticipating high volumes of sales. For this reason, it is hard to apply for credit card processing system. It can be said that credit card processors are hoping that merchants can have large amount of credit card transactions because they can get commission from the sales. Although this is the case, they are hesitant to approve a business owner who anticipates large volume of orders per month. The underlying reason for this is that they are foreseeing charge backs and a merchant may not have the money to cover this problem. If one business doesn’t have any history to show regarding their credit card processing, it is most likely due to charge backs that are experienced by this kind of venture.This is also true for internet business because of the big possibility of fraud transactions. E-commerce business is said to be high risk especially if they receive high volume of sales. In contrast, if one opens a retail business in traditional brick and mortar setting would be favorable to some providers. If an internet merchant has a good credit history, business owners can surely get an approval for credit card processing. They are said to be credit worthy so they are given a chance to avail of merchant account. However take note that if they receive high volume of sales, this could pose a problem.High volume merchant account that receives about $50,000 of monthly sales can be seen as high risks. Banks and providers need an assurance that the owner can pay for charge back fees. They would also investigate on how much money they have on their bank account. If the amounts are acceptable, chances are the high volume account will be given. It can be said that those with an established business have a high chance of acquiring this kind of account. Even if they receive higher volumes but they don’t have any charge backs, they are perfect for getting high volume merchant account.Of course there are some setbacks for gaining approval. One is the fact that credit processing provider can imposed a reserve funds that they control. This covers charges and other expenses. The money will be transferred to merchant’s bank account after a few months. There are some business owners who don’t like this idea. This can definitely affect their cash flow. Although this is the case, this is the only ways to have a merchant account. In the long run, having a credit card processing is worth it.The good news is there are quite a number of credit card companies that you can choose from that offer this kind of service. If your business receives high volume of credit card transactions, there are vendors that are willing to accept the risk. They also understand the background of business. One can even find a provider that offer a cheap rate for high risk merchant account. This is definitely a win-win situation for the merchant and the merchant account provider.