Have you heard of or considered merchant capital funding? As a business owner, you understand that securing adequate funding is essential for growth, expansion, and maintaining a competitive edge in the market. However, traditional financing options may not always be accessible or suitable for every business. This is where merchant capital funding can make a significant difference.
Merchant capital funding operates on a simple premise. Instead of relying on traditional loan repayment terms, it involves an agreement between the lender and the business owner. To initiate the process, you apply with the necessary financial information and sales history. Lenders may require documentation such as bank statements, credit card processing statements, and proof of ownership.
The lender evaluates your application and assesses your business’s credit card sales history, average monthly revenue, and repayment capacity. If approved, the lender will extend a funding offer specifying the lump sum amount and the repayment terms. Upon accepting the offer, you enter into an agreement that outlines the terms and once the agreement is in place, the funds are deposited into your business account. Repayment typically occurs through a fixed percentage of your daily credit card sales.
One of the primary advantages of merchant capital funding is the speed at which you can secure the funds. The application and approval process is typically quick and streamlined, allowing you to access the capital you need in a matter of days, compared to the lengthy approval processes of traditional loans.
Merchant capital funding provides flexibility in how you utilize the funds. Unlike some traditional loans that come with restrictions on how the money can be spent, merchant capital funding allows you to allocate the funds as per your business priorities, whether it’s purchasing inventory, investing in equipment, expanding marketing efforts, or covering unexpected expenses.
Merchant capital funding is an unsecured form of financing, meaning you are not required to provide collateral or personal guarantees. This reduces the risk associated with borrowing and offers peace of mind, especially for businesses without substantial assets or those looking to avoid putting personal assets on the line.
Traditional lenders often rely heavily on credit scores when assessing loan applications. In contrast, merchant capital funding considers your business’s sales performance rather than credit history. This makes it a viable option for businesses with less-than-perfect credit scores or limited credit history.
The repayment structure of merchant capital funding aligns with your business’s cash flow. Since repayment is based on a percentage of your sales, it ensures that payments are aligned with revenue, and this flexibility provides relief during slow periods.
Merchant capital funding, also known as a merchant cash advance (MCA), is a financing solution that provides quick access to capital by offering a lump sum payment in exchange for a portion of future credit card sales. Make the most of your funding options with digital marketing services from our team of professionals at YuzzBuzz to achieve a holistic boost in your sales performance!
With YuzzBuzz’s all-inclusive services, you can boost your business and strengthen your online presence. You’ll attract more customers and improve your brand’s visibility in a highly competitive digital world. Our team of experts will closely collaborate with you to comprehend your business requirements, create a tailored marketing strategy, and execute it with accuracy to support your business’s expansion endeavors! Visit our website to learn more about what we do or find our capital funding page to get started.